2024-05-31 16:00:00 ET
Summary
- BLBD has enjoyed an astronomical stock price rally, thanks to the pent-up demand for school bus replacements after multiple delays over the past three years.
- The company will be able to tap into the massive electrification trend over the next decade, thanks to its improved sales across electric/ low-emission school buses compared to its competitors.
- These developments have already contributed to BLBD's higher profit margins and growing backlogs, further aided by the numerous price hikes thus far.
- There remains great tailwinds in the intermediate term, thanks to the aging school bus fleet profile at an average of twelve years against the replacement cycle of fifteen years.
- This is on top of the new funding for electric school buses, with the US government looking to replace much of the existing school buses to meet a "more stringent emission standards taking effect in 2027."
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Blue Bird Soars As Funding Grows For School Bus Replacements, Initiate Buy