RAIL Continues To Suffer From Weak Coal Fundamentals
Analysts at Stephens Inc maintain their "equal weight" rating on FreightCar America Inc (NASDAQ: RAIL). The target price for RAIL is set to $20.
According to Stephens Inc, the company will continue to suffer during 2010 due to continuing weakness in coal fundamentals. The analysts believe that RAIL will not enjoy positive EPS until mid-2011.
“Demand can only improve for FreightCar America (it received zero orders from
July-Oct.), but we think 2010 will be another weak year for coal car demand,” Stephens says. “RAIL is an early cycle name, but we think the better opportunity to invest in a volume recovery is with the railroad companies directly,” the analysts add.
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