UPDATE: BMO Capital Markets Initiates Rush Enterprises at Market Perform

BMO Capital Markets initiated coverage on Rush Enterprises

with a Market Perform rating and a $28.00 price target. BMO Capital Markets analyst Joel Tiss noted, "We are initiating coverage on Rush Enterprises with a Market Perform rating and $28 price target, which is based on a 13x P/E multiple on our 2014 EPS estimate of $2.15. These high-quality shares, with a lower-risk profile than truck industry supply companies, benefit more than the rest of our universe from a slow-growth and advanced-age truck fleet that needs extensive repairs and maintenance. … But a stronger cyclical recovery for new trucks would hurt Rush's mix of business, returns, and profitability." Rush Enterprises closed at $25.82 on Monday.