UBS Maintains a 'Neutral' on FreightCar America (RAIL); Strong 4Q & Backlog, But Remain Cautious
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Price: $7.33 -1.08%
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 9 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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UBS maintains a 'Neutral' on FreightCar America (NASDAQ: RAIL) price target raised from $22 to $28.
UBS analyst said, "The 4Q beat was driven by sales (at $187m, well ahead of UBSe and consensus of $127m) as well as margins. Gross margin of 8.9% (UBSe: 7.5%) improved from 7.0% in 3Q and -0.1% last year...Despite increasing its railcar deliveries 64% from 3Q (RAIL delivered 2,489 railcars vs. 1,515 in 3Q11 and 694 in 4Q10), backlog rose 32% sequentially and 304% YoY on strong order activity."
UBS raises FY12 EPS estimate from $1.15 to $2.00.
"Although 4Q orders were strong, we caution against extrapolating this run rate forward. Mgmt sounded a note of caution as well, noting “We maintain a positive outlook on the eastern coal car replacement cycle, but are mindful of the fact that continued mild winter weather and low industrial production growth may slow new coal car demand.”"
For an analyst ratings summary and ratings history on FreightCar America click here. For more ratings news on FreightCar America click here.
Shares of FreightCar America closed at $25.33 yesterday.
UBS analyst said, "The 4Q beat was driven by sales (at $187m, well ahead of UBSe and consensus of $127m) as well as margins. Gross margin of 8.9% (UBSe: 7.5%) improved from 7.0% in 3Q and -0.1% last year...Despite increasing its railcar deliveries 64% from 3Q (RAIL delivered 2,489 railcars vs. 1,515 in 3Q11 and 694 in 4Q10), backlog rose 32% sequentially and 304% YoY on strong order activity."
UBS raises FY12 EPS estimate from $1.15 to $2.00.
"Although 4Q orders were strong, we caution against extrapolating this run rate forward. Mgmt sounded a note of caution as well, noting “We maintain a positive outlook on the eastern coal car replacement cycle, but are mindful of the fact that continued mild winter weather and low industrial production growth may slow new coal car demand.”"
For an analyst ratings summary and ratings history on FreightCar America click here. For more ratings news on FreightCar America click here.
Shares of FreightCar America closed at $25.33 yesterday.
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