Gregory Lewis, an analyst from BTIG, reiterated the Buy rating on Blue Bird. The associated price target was raised to $65.00.
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Gregory Lewis has given his Buy rating due to a combination of factors that highlight Blue Bird’s strong financial performance and promising future prospects. The company has shown impressive growth, with a substantial increase in gross margins and a positive outlook for further margin expansion driven by higher volumes and firm pricing strategies. Despite some uncertainties surrounding the EPA Clean School Bus Program, the resumption of funding and local support in major markets like New York and California bolster confidence in the continued transition to cleaner fuel school buses.
Moreover, Blue Bird’s robust balance sheet, characterized by a significant cash position and minimal debt, provides a solid foundation for ongoing stock repurchases, enhancing shareholder value. The company’s valuation remains attractive, trading at a reasonable multiple of its projected earnings and EBITDA for FY2026. These factors, combined with strategic financial management and a supportive market environment, underpin Gregory Lewis’s positive outlook and Buy rating for Blue Bird.
Based on the recent corporate insider activity of 46 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of BLBD in relation to earlier this year.