UPDATE: Wunderlich Securities Initiates Buy, $27 on Rush Enterprises; Sell-Off Creates Compelling Valuation

Wunderlich Securities initiates its coverage on Rush Enterprises RUSHA with a Buy rating and a $27 price target. Wunderlich Securities comments, "We believe that Rush's earnings will continue to benefit from a historically old fleet that will require a multi-year replacement cycle, acquisition activity on both the heavy- (HD) and medium-duty (MD) fronts, and strength in higher margin parts and services that is driving record absorption rates. In addition, Rush continues to deliver strong execution on its three-pronged growth strategy of expanding aftermarket service capabilities, broadening its commercial vehicle offering, and expanding its geographical network of truck centers." RUSHA closed at $15.97 on Wednesday.