UPDATE: Bank of America Upgrades Greenbrier Companies to Neutral, Raises PT on Continued Makeover

In a report published Thursday, Bank of America analyst Ken Hoexter upgraded the rating on Greenbrier Companies

from Underperform to Neutral, and raised the price target from $18.00 to $25.00. In the report, Hoexter noted, “We are raising our rating on GBX shares to Neutral from Underperform and increasing our price objective to $25 from $18. Greenbrier continues its recent makeover, adding significant railcar orders to its backlog, and moves further away from 2013 being a stalled year with respect to earnings growth. The stunted growth was due to it revamping one of its production lines to add additional tanker car production, as it now moves to fill up its 2014 and 2015 railcar manufacturing slots. Our prior Underperform rating was based on 2013 valuation on flat earnings due to a stalled recovery as it revamped its production. Given the strength in its backlog, we are increasingly confident in its 2014/2015 performance. The company gained new orders for 5,400 railcars valued at $575 million (announced yesterday after market), with 2,700, or about half of the order for high-margin tank cars, 700 are for Automaxes (auto segment), while the remainder are for double-stack intermodal platforms, boxcars, gondola, and hopper cars. This backlog addition follows its January announcement of a 4,200 railcar order valued at $430 million. These additions bring its fiscal year-to-date orders to 9,600 railcars, and its current backlog to 15,100, from 9,700 cars, its highest level since 4Q11, and more than a full year's production rate.” Greenbrier Companies closed on Wednesday at $21.33.