UBS Maintains a 'Neutral' on FreightCar America (RAIL); Cutting PT and Estimates
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Price: $7.32 -1.21%
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 cut from $28 to $25.
Analyst, Jason Feldman, said, "We substantial coal exposure (93% of 2011 deliveries), RAIL has declined 11% since reporting 4Q on 2/17. U.S. coal production is under pressure from a myriad of factors, including cheap natgas, a warm winter and regulatory factors, and these concerns are weighing on RAIL (KOL index -12% over same period). While RAIL’s backlog runs t rough the end of the year (so we have relatively good visibility to 2012 earnings), we see risk to orders over the next few quarters. As such, we are lowering both our forward earnings estimates and the multiple used to arrive at our price target."
"To reflect lower near-term orders, we are lowering our 2012E, 2013E & 2014E EPS to $1.90, $2.20 & $1.90, from $2.00, $2.36 & 2.01, respectively."
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 $22.27 yesterday.
Analyst, Jason Feldman, said, "We substantial coal exposure (93% of 2011 deliveries), RAIL has declined 11% since reporting 4Q on 2/17. U.S. coal production is under pressure from a myriad of factors, including cheap natgas, a warm winter and regulatory factors, and these concerns are weighing on RAIL (KOL index -12% over same period). While RAIL’s backlog runs t rough the end of the year (so we have relatively good visibility to 2012 earnings), we see risk to orders over the next few quarters. As such, we are lowering both our forward earnings estimates and the multiple used to arrive at our price target."
"To reflect lower near-term orders, we are lowering our 2012E, 2013E & 2014E EPS to $1.90, $2.20 & $1.90, from $2.00, $2.36 & 2.01, respectively."
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 $22.27 yesterday.
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