As previously reported, Longbow upgraded Navistar to Buy from Neutral with a $50 price target. Analyst Faheem Sabeiha has a more positive view following a stronger outlook from contacts and positive market share progression. Sabeiha's 2018 Class 8 dealer checks indicate stronger replacement demand with a growth outlook of +30%, up from +25-30% prior, increased installation rate of Navistar's A26 engine of +25-30% this year, versus 21% in 2017, due to increased performance and availability, and a largely normal pricing environment. The analyst expects the Truck Segment to return to profitability in 2018 and for the company to raise its industry and financial guidance on the Q2 earnings call on June 5.