Analyst Chris Pierce from Needham reiterated a Buy rating on Blue Bird and keeping the price target at $70.00.
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Chris Pierce has given his Buy rating due to a combination of factors, including Blue Bird’s strong performance in the fourth quarter and the company’s reaffirmation of potentially conservative guidance for fiscal year 2026. The industry conditions appear favorable, providing a solid foundation for Blue Bird’s long-term outlook.
Despite uncertainties surrounding electric vehicle school buses, Pierce sees a compelling risk/reward scenario, as Blue Bird is not fully credited for its consistent execution. Concerns about the unit backlog are countered by elevated backlog levels compared to pre-COVID times, which may alleviate some worries. The $70 target price is based on a valuation of 10 times the estimated adjusted EBITDA for fiscal year 2026, reflecting a premium over Blue Bird’s historical multiples, supported by an improved margin profile and strategic positioning in the North American specialty vehicle market.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $61.00 price target.