UPDATE: Stifel Nicolaus Initiates FreightCar America with Hold; Valuation Full

Stifel Nicolaus initiated its coverage on FreightCar America

with a Hold rating. Stifel Nicolaus said, "Our fair value estimate of $24 (or 6.0x our 2014 EPS estimate of $2.00 plus $12/share in cash and equivalents and no debt) provides insufficient upside potential to warrant a Buy rating. Our main concern is that the declines in coal traffic in the 1H12 may lead to weak near-term order activity and medium-term production slowing. Despite our Hold rating, we believe the shares could be considered a longer-term play on the replacement of coal cars in the eastern U.S." FreightCar America closed at $21.45 on Wednesday.