UPDATE: Stifel Nicolaus Initiates Greenbrier Companies with Buy, $21 PT; Fundamentals Undervalued
Stifel Nicolaus initiated its rating on Greenbrier Companies (NYSE: GBX) with a Buy rating and a price target of $21 a share.
Stifel Nicolaus noted, "We are establishing a 12-month target price of $21, or 7.0x our fiscal 2014 EPS estimate of $2.95. We believe this target price provides more than enough upside potential over the coming 12 months to warrant a Buy rating. We believe the discount in P/E multiples that currently exists between the company's valuation and its peer group, as well as the recent steep pullback in the share price, are both larger than what is warranted by the company's fundamentals."
Greenbrier Companies closed at $14.69 on Wednesday.
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