UPDATE: Sterne Agee Reiterates On Greenbrier Companies On Higher Backlog/Solid Margin Upside

In a report published Monday, Sterne Agee analyst Sal Vitale reiterated a Buy rating on

, and raised the price target from $55.00 to $75.00. In the report, Sterne Agee noted, “GBX's earnings and backlog are benefitting from a confluence of company-specific margin improvement initiatives, and positive industry fundamentals, i.e., strong railroad volumes, deteriorating railroad velocity, and the prospect of stringent safety regulations driving a tank car replacement cycle. We think the stock will react positively to several catalysts, including federal tank car safety regulations, and earnings guidance on the recently announced JV with Watco.” Greenbrier Companies closed on Thursday at $67.29.