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Fly News Breaks for April 19, 2017
NAV, MOD, WBC, CMI, PCAR
Apr 19, 2017 | 07:49 EDT
Baird analyst David Leiker remains cautious on trucking stocks despite the recent underperformance in the midst of better orders. He said he expects downside through Q1 as he sees valuation compression offsetting earnings upside. That said, he sees a favorable long-term set up for a "normal" class-8 recovery. Leiker mostly favors Modine (MOD) and WABCO (WBC), followed by Navistar (NAV), while adding that pullbacks in Cummins (CMI) and PACCAR (PCAR) would bring risk/reward to more favorable levels.
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