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Class 8 Truck Production Not Expected To Peak In 2018, Analyst Says
The outlook looks great for truck manufacturers and component suppliers as order season jumped to a quick start, large fleets returned to equipment markets and contract rates have increased, said Michael Baudendistel, transportation equipment analyst for Stifel.
In an industry update, “Too much of a good thing is a good thing,” Baudendistel explained some investors are concerned the positive trend might mean 2018 will be a peak year for truck production, but he believes 2019-2020 might be stronger than 2018.
As a result, he increased earnings estimates for truck equipment manufacturers and changed the stock rating to buy for Navistar, upgraded to the same ratings as Meritor and WABCO. The news is good for the country’s struggling manufacturing sector. MORE