Buy Rating on Blue Bird: Strong Execution, De-Risked EV Growth, and Raised $65 Price Target Support Upside

In a report released today, Sherif El-Sabbahy from Bank of America Securities reiterated a Buy rating on Blue Bird, with a price target of $65.00.

Sherif El-Sabbahy has given his Buy rating due to a combination of factors tied to Blue Bird’s strong execution and improving financial outlook. The company delivered quarterly revenue and EBITDA above expectations, expanded margins, and subsequently increased its multi-year guidance for both EBITDA and free cash flow while keeping its sales outlook intact. Management is reinvesting in operations, maintaining a healthy balance sheet, and demonstrating the ability to grow profitably despite external pressures such as tariffs, which supports confidence in sustained value creation.

Sherif El-Sabbahy’s rating is based on the view that Blue Bird’s growth prospects, particularly in electric vehicles, are both visible and relatively de-risked. EV unit sales exceeded management’s prior assumptions, and state-level incentives are expected to underpin meaningful annual EV volumes even without incremental federal EPA awards, with additional upside if federal funding resumes. The order backlog has increased, with a rising share of EV units and visibility extending into 2027, underscoring durable demand. Reflecting these dynamics, El-Sabbahy raised forward estimates and the price objective to $65, implying substantial upside from current levels while keeping the valuation multiple in line with historical norms.

El-Sabbahy covers the Industrials sector, focusing on stocks such as Quanta Services, Legence Corp. Class A, and WillScot Mobile Mini Holdings. According to TipRanks, El-Sabbahy has an average return of 7.1% and a 47.00% success rate on recommended stocks.

In another report released today, TipRanks – xAI also reiterated a Buy rating on the stock with a $59.00 price target.