As reported earlier, Goldman Sachs analyst Jerry Revich downgraded Navistar to Sell from Neutral and lowered his price target to $23 from $43 as part of his broader research note on the Engineering & Construction sector which requires a more selective positioning amid "growing signs of oversupply". The analyst expects a downturn in U.S. truck production to become evident by the end of next year and weigh on margins, even though the business trades "at the high end of its historical enterprise value to EBITDA valuation range. Revich adds that while the US truck demand accelerated in 2016-17 amid a "sharp increase in spot rates born of low capital stock, low unemployment, and electronic logging standards that reduced effective capacity", supply has now caught up with demand.