UPDATE: Jefferies Color on FreightCar America PT Decrease

Jefferies, which lowered its PT on shares of FreightCar America RAIL, is providing some color on the stock. “We assume coverage of RAIL with a Buy rating (vs. Buy under prior analyst coverage) given our views on current valuation in the context of peak-cycle earnings power,” Jefferies writes. “Our calendar year-end 2011e target price of $30 (represents 19.7% upside from Tuesday's close of $25.06) is based on estimated peak-cycle earnings power of $4.00 to $4.50, at a targeted peak-cycle P/E of 8x, discounted back 18 months at an estimated ‘required' market rate of return of 10%.” FreightCar America closed Tuesday at $25.06.