Blue Bird initiated with a Buy at BofA

BofA initiated coverage of Blue Bird with a Buy rating and $26.50 price target. Efforts to turn around the business amid significant cost inflation have revamped financial performance, showing through in the cash flow statement and EBITDA margin, the analyst tells investors in a research note. The firm says Blue Bird is also well-positioned to lead in electrification for school business as $5B in federal funding ramps up.