Greenbrier Cos. Stock Rating Upgraded by Bank of America Corp. (GBX)
Greenbrier Cos. (NYSE:GBX) was upgraded by investment analysts at Bank of America Corp. from an “underperform” rating to a “buy” rating in a note issued to investors on Friday, Analyst RN reports. The firm currently has a $34.00 target price on the stock, up from their previous target price of $20.00. Bank of America Corp.’s price objective would suggest a potential upside of 28.11% from the company’s current price.
The analysts wrote, “Greenbrier posted 4Q EPS of $0.69, above our $0.52 and the street’s $0.61, with core operations contributing to $0.03/sh of the beat. While it fell shy of our top-line target, it has demonstrated solid margin improvement in its core manufacturing segment (70% of revenues), as it continues to grow and diversify its backlog. Meanwhile, it is improving efficiencies at its challenged Wheels, Repair, & Parts segment (27% of revenue), closing underperforming facilities, and unlocking capital toward its $100mn goal by February 2014 (it has already reduced capital work by $55 million, ahead of target). Production is ramping-up at its GIMSA facility, and accelerated throughout the quarter, where it is currently exceeding 15 tanks/day and intends to maintain that level while improving margins as it increases efficiency. In our view, Greenbrier is hitting its stride faster than we expected, focusing on diversifying its portfolio while maintaining a robust order book as it seeks to improve operations at its facilities, unlock capital, and improve margins. We upgrade to Buy from Underperform, as it is still trading at the bottom end of its historical EV/EBITDA range.”
Greenbrier Cos. (NYSE:GBX) traded up 8.97% on Friday, hitting $28.92. The stock had a trading volume of 307,650 shares. Greenbrier Cos. has a 52-week low of $13.25 and a 52-week high of $28.00. The stock’s 50-day moving average is $25.24 and its 200-day moving average is $23.70. The company’s market cap is $787.2 million.
Greenbrier Cos. (NYSE:GBX) last released its earnings data on Thursday, October 31st. The company reported $0.69 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.08. The company had revenue of $484.21 million for the quarter, compared to the consensus estimate of $526.00 million. During the same quarter in the previous year, the company posted $0.26 earnings per share. The company’s revenue for the quarter was up 11.6% on a year-over-year basis. Analysts expect that Greenbrier Cos. will post $1.92 EPS for the current fiscal year.
In other Greenbrier Cos. news, CEO Alejandro Centurion sold 2,354 shares of the company’s stock on the open market in a transaction dated Tuesday, October 29th. The shares were sold at an average price of $26.38, for a total transaction of $62,098.52. The sale was disclosed in a filing with the SEC, which is available at this link.
Separately, analysts at Stifel Nicolaus raised their price target on shares of Greenbrier Cos. from $27.00 to $28.00 in a research note to investors on Tuesday, October 22nd. They now have a “buy” rating on the stock. One investment analyst has rated the stock with a sell rating, five have given a hold rating and five have assigned a buy rating to the stock. The company has a consensus rating of “Hold” and an average price target of $27.62.
The Greenbrier Companies, Inc (NYSE:GBX), formerly Greenbrier Oregon, Inc, are the designers, manufacturers and marketers of railroad freight car equipment in North America and Europe, a manufacturer and marketer of ocean-going marine barges in North America and a provider of wheel services, railcar refurbishment and parts, leasing and other services to the railroad and related transportation industries in North America.
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