Greenbrier Companies ( NYSE: GBX ) stock slipped on Tuesday after Bank of America analyst Ken Hoexter downgraded the stock to a Sell-equivalent.
“We believe [Greenbrier’s] sequentially declining backlog is indicative of a softer environment,” he explained. “While its forward pricing continues to hold, we are more neutral on rail CapEx growth as freight demand remains muted.”
As such, he lowered his EPS estimates for 2023, 2024, and 2025 to below consensus levels and trimmed his price target. The bank’s target now stands at $26, down from $31 under the prior Neutral rating.
Hoexter voiced a preference for Wabtec Corp. ( WAB ) in the rail equipment space, upgrading the stock to Neutral from a prior Underperform.
Read more on Bank of America’s review of the trucking industry .
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Greenbrier companies cut to Sell at BofA amid margin, volume concerns