Baird reiterates positive view of Rev Group after Collins sale

Baird analyst Mircea Dobre followed up with Rev Group management following this morning’s announcement of a series of strategic actions – including the sale of Collins School Bus for an all-cash transaction price of $303M, announcement that it will be exiting the transit bus manufacturing business and plans to pay a special cash dividend of $3 per share – and reiterates a positive view of the stock. The firm, which contends that operating improvement in core businesses coupled with lower leverage leave Rev Group “well-positioned to drive shareholder value through further M&A,” keeps an Outperform rating and $24 price target on the shares.