JP Morgan's Conference Call Takeaways with Navistar Int'l (NAV)

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Navistar International (NYSE: NAV) posted a better than expected FQ2 EPS. Navistar is a manufacturer of trucks and diesel engines.

NAV is rated Neutral by JP Morgan. Its price target is $52.00, up $4 from the previous target of $48.00. NAV is currently trading at $52.24.

JP Morgan had these takeaways from its conference call with Navistar:
"1) management pulled forward the tax benefits from Q3 into Q2 and the benefits were always included in guidance;
2) management will build and hold 2010 trucks to make sure they are good quality (we do not fully understand this rationale);
3) management incentive costs have gone up with its last guidance increase;
4) the company spent $13MM on the CAT NC2 JV and Mahindra this past quarter;
5) in addition, the company spent $12MM on core NPI’s;
6) every core business is performing better than YA;
7) only 200 units of the J.B. Hunt 5000 unit order has been placed for delivery this year."