Blue Bird’s Strong Performance and Strategic Initiatives Justify Buy Rating and Raised Target Price

Analyst Chris Pierce of Needham reiterated a Buy rating on Blue Bird, boosting the price target to $53.00.

Chris Pierce has given his Buy rating due to a combination of factors, including Blue Bird’s strong performance against low expectations and the company’s ability to maintain pricing power despite concerns about a potential slowdown in the electric vehicle school bus market. The company’s strategic initiatives and new product offerings are expected to drive long-term margin improvements, which supports the optimistic outlook.
Furthermore, Pierce’s decision to raise the target price to $53 reflects a conservative valuation approach, aligning with Blue Bird’s historical average multiple. This is despite the company’s improved margin profile and higher return on invested capital, which suggests that the current market fears may be overstated. Overall, the positive long-term margin guidance and the company’s execution capabilities underpin the Buy rating.