Blue Bird Corp (BLBD) PT Raised to $65 at BTIG

BTIG analyst Gregory Lewis raised the price target on Blue Bird Corp (NASDAQ: BLBD) to $65.00 (from $55.00) while maintaining a Buy rating.

The analyst comments "BLBD has traded up ~30% since reporting FY3Q25 earnings in early August on the back of an earnings beat and guidance raise (see: BLBD FY3Q25 Earnings Note) as management continues to execute both on the top line and on costs. Gross margins are up ~240bps over the TTM average and look poised to continue to melt up on higher volume and firming ASPs (we note mix matters and an acceleration in alt-fuel buses should continue to drive margin expansion). And while ongoing headwinds remain with the EPA Clean School Bus Program following the current administration freezing funding in January for Phase 2 and 3 of the program, only to resume funding for the program in February, Phase 4 saw school districts submit applications in January for up to $965M under the program. We note while we have concerns about Phase 5 (roughly $1B in potential funding) moving forward under the current administration, with the administration unfreezing Phase 2 and 3 funding and submissions for Phase 4 already in, and the remaining ~$2B previously approved by Congress still in the Big Beautiful Bill, we remain constructive on Phase 4 (thinking 70% chance) moving at least partially forward in 1H26. Bottom line: while we still have concerns around the future of the Clean School Bus Program, with major school bus markets including New York (#1) and California (#5) providing local level funding programs, we expect the ongoing transition to cleaner fuel school buses to continue albeit at a slower pace than this time last year."

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