UPDATE: Citigroup Reiterates on Meritor Following FQ4 Wrap

In a report published Monday, Citigroup analyst Itay Michaeli reiterated a Buy rating on Meritor (NYSE: MTOR), but lowered the price target from $10.00 to $9.00.

In the report, Citigroup noted, “We rate Meritor (MTOR) shares Buy/High Risk (1H). We view the stock as an optimal vehicle to position for a recovery in commercial vehicles, where leading participants are expected to benefit from a multi-year recovery following severe downturns in North America and Europe. We believe Meritor has both the capability of achieving roughly $500 million of EBITDA under recovered industry volumes and the potential to see its trading multiples shift higher as a function of the company's focus away from the light vehicle segment.”

Meritor closed on Friday at $7.03.