Blue Bird (BLBD) has received a new Buy rating, initiated by Needham analyst, Chris Pierce.
Chris Pierce has given his Buy rating due to a combination of factors including the strong growth potential in Blue Bird’s core school bus business and the company’s promising transition to electric vehicles (EVs). The company is experiencing a cyclical upturn after years of industry-wide underinvestment, with Blue Bird’s school bus business representing a significant portion of the bus order backlog. Pierce’s optimism is further supported by recent company performances and positive feedback from industry channel checks, indicating a sustainable growth trajectory.
Pierce’s analysis suggests that Blue Bird is poised for approximately 10% growth annually, along with an expansion in profit margins. This growth is expected to drive a re-rating of the company’s stock, which is currently trading at a low valuation relative to its prospects. The anticipation of improved earnings, coupled with successful execution on strategic initiatives, underpins the $44 price target. This target reflects a 10x multiple on projected FY25 adjusted EBITDA, indicating confidence in Blue Bird’s future financial performance and market position.
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Blue Bird (BLBD) Company Description:
Blue Bird Corp. engages in the design and manufacture of school buses. It operates through the Bus and Parts business segments. The Bus segment includes the manufacturing and assembly of school buses to be sold to a variety of customers across the United States, Canada, and in international markets. The Parts segment provides routine maintenance, replacement of parts that are damaged in service, and replacement of parts that suffer from wear and tear. The company was founded by Albert Laurence Luce in 1927 and is headquartered in Macon, GA.
Read More on BLBD:
- Blue Bird Corp Announces Shareholder Share Disposal Deal
- Blue Bird announces offering of 4.04M shares of common stock for holders
- Blue Bird price target raised to $35 from $26 at Roth MKM
- Blue Bird price target raised to $44 from $38 at Craig-Hallum
- Blue Bird price target raised to $34 from $31 at R.F. Lafferty
