UPDATE: Stifel Reiterates Buy Rating, Raises PT on Greenbrier Companies on Raised Estimates on 2014 Outlook

In a report published Monday, Stifel analyst Michael Baudendistel reiterated a Buy rating on Greenbrier Companies GBX, and raised the price target from $31.00 to $36.00. In the report, Stifel noted, “Despite growing in the area of tank car production, the company still has relatively little exposure to a potential tank car overbuild the next 2-3 years. The company has significant exposure to covered hoppers, an area that we expect to outperform most railcar types during the next two years. Intermodal and the company's barge manufacturing business represent areas with little in backlog currently, but have the potential to create upside surprise. Fiscal 2014 margins should benefit from a positive mix impact that could cause analysts' estimates and the company's guidance to be proven too conservative. Consolidation of service centers should contribute modestly to margin expansion.” Greenbrier Companies closed on Friday at $32.60.