UBS Upgrades FreightCar America (RAIL) to Neutral

UBS upgraded FreightCar America (NASDAQ: RAIL) from Sell to Neutral with a price target of $22.00 (from $24.00) as benefits of transformation take hold.

Analyst Eric Crawford commented, "RAIL is in the midst of a transformation, from a coal-centric railcar manufacturer to one that produces general-freight railcars. We believe the up-front headwinds associated with this transformation have peaked (facility procurement and expansion costs, employee training, initial manufacturing inefficiencies, etc.), and we believe RAIL is now positioned to deliver improved results. Ultimately, we believe CEO McNeely has done an admirable job repositioning the company during his tenure. That said, while we are upgrading our rating to Neutral, three factors prevent us from being more constructive on the shares…"

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 $20.46 yesterday.

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