PACCAR, Inc. (PCAR) - Bear of the Day

By Zacks.com,  July 27, 2012, 01:00:01 AM EDT

Despite being the third largest manufacturer of heavy-duty trucks in the world, PACCAR, Inc. ( PCAR ) faces tough competition in its principal markets: the U.S., Canada and Europe. Further, the company expects industry sales in the above-16-ton truck market in Europe will fall due to the ongoing uncertainty in Eurozone.

Although the company beat the Zacks Consensus Estimate by a penny in the second quarter of the year, it expects sluggish growth in the U.S. and economic weakness in Europe to continue to mar its earnings growth. Therefore, we have downgraded the recommendation on the shares of the company to Underperform from Neutral and set a target price of $35.00.

The current P/E, which is close to the lower end of the historical range, is at a 15% premium to the peer group for 2012. Our $35.00 target price, 10.5x our 2012 EPS estimate, reflects our downgraded recommendation.
 
PACCAR INC (PCAR): Free Stock Analysis Report
 
PACCAR INC (PCAR): Free Stock Analysis Report
 
PACCAR INC (PCAR): Free Stock Analysis Report
 
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Zacks Investment Research




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: PCAR



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