As previously reported, Buckingham upgraded Navistar to Buy from Neutral and maintained a $48 price target following Q3 results. Analyst Neil Frohnapple believes risk/reward is now attractive given significant increases in his EBITDA forecasts combined with recent stock weakness. Frohnapple was surprised by yesterday's sell off in light of stronger than expected guidance and positive Class 8 commentary. Further, the analyst believes the TRATON alliance, formerly Volkswagen Truck & Bus, will lead to a complete takeover of the company and provides a call option on shares.