- EV bus manufacturers have pulled back from year-to-date highs based on factors that could include valuation concerns, selling by major shareholders, and supply chain disruptions.
- The legislative backdrop for EV school bus funding is highly positive, although major new funding might not start to fully reach customers until late-2022/2023.
- I compare Blue Bird with Lion Electric, a newer entrant that is making strides with electric school buses but also other bus/truck types, and a battery plant under construction.
- There looks to be a notable difference in the risk/reward proposition, for the two companies, at current enterprise values and multiples. I continue to be bullish on Blue Bird.
- Supply chain disruptions look like a clear case of a temporary headwind -- for Blue Bird, about 21% of unit volume was pushed out of the recent quarter into FY2022.
For further details see:
Blue Bird Vs. Lion Electric: Room For Both, But A Contrast In Value