Bank of America Securities analyst Sherif El-Sabbahy reiterated a Buy rating on Blue Bird today and set a price target of $62.00.
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Sherif El-Sabbahy has given his Buy rating due to a combination of factors that highlight Blue Bird’s strong performance and strategic initiatives. The company reported impressive financial results, with its fourth-quarter revenue and EBITDA significantly surpassing expectations. This performance underscores Blue Bird’s ability to execute effectively and maintain a robust financial outlook, which includes a promising free cash flow expectation and strategic investments in new plant facilities.
Additionally, Blue Bird’s backlog has shown improvement, particularly in electric vehicle units, after the company addressed pricing uncertainties related to tariffs. The firm has also outlined a clear capital allocation strategy, with plans for manufacturing expansion, research and development, and share repurchases. These factors, combined with strong demand for buses and Blue Bird’s leadership in diesel alternatives, support the analyst’s optimistic outlook and the increase in the price objective to $62.
In another report released today, Needham also reiterated a Buy rating on the stock with a $70.00 price target.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLBD in relation to earlier this year.