UPDATE: Stifel Nicolaus Initiates Buy, $7.30 PT on Student Transportation; School-Bus Outsourcing Accelerating
Stifel Nicolaus initiates its coverage on Student Transportation (NASDAQ: STB) with a Buy rating and a $7.30 price target.
Stifel Nicolaus notes, "We believe that Student Transportation is appropriate for those investors looking for a relatively low-beta, high income security with exposure to the transportation industry. Investors can earn a return through either the cash dividend or participating in the dividend reinvestment program in combination with share price appreciation, which we believe will be modest. As such, our 12-month target price of $7.30 provides 13.9% upside potential relative to last night's closing price."
STB closed at $6.41 on Monday.
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