UPDATE: Stifel Upgrades The Greenbrier Companies On 1Q15 Results

In a report published Thursday, Stifel analyst Michael Baudendistel upgraded the rating on

from Hold to Buy, and named a $66.00 price target. In the report, Stifel noted, “We are upgrading the shares of The Greenbrier Companies from Hold to Buy primarily due to our added confidence regarding the company's margin enhancement and return-on-capital improvement initiatives in its Manufacturing and Repair/Wheels segments. Our target price of $66, or 11x our new fiscal 2016 EPS estimate of $6.00, provides 27% upside from Wednesday's closing price, which is sufficient to warrant a Buy rating. We believe an 11x multiple on our 2016 EPS estimate is appropriate given the positive trajectory of earnings built into our model through 2016 that should be driven by modest railcar delivery volume improvement combined with margin enhancement in the company's Manufacturing and Services segments. We believe the shares the past few months have traded more closely with oil prices than is warranted by the company's fundamentals. Therefore, we are not convinced that the market fully appreciates the diversity of the company's Manufacturing, Repair and Services businesses.” The Greenbrier Companies closed on Wednesday at $51.90.