Greenbrier upped to Buy at BofA Merrill on possible turn in railcar demand

|About: The Greenbrier Companies, Inc. (GBX)|By:, SA News Editor

Greenbrier (GBX +2.4%) extends gains a day after its strong FQ2 earnings report, in which EPS, revenue and EBITDA all easily beat expectations, and reporting 3,900 new railcar deliveries.

BofA Merrill Lynch upgrades shares to Buy from Neutral with a $57 price target, raised from $49, saying improving rail volumes could signal an early turning point for railcar demand; the firm also is “increasingly positive” on the international opportunity for GBX, which is getting little credit in valuation.

KeyBanc reiterates its Overweight rating and raises its price target to $60 from $50, citing significant liquidity, increased visibility and improving fundamentals, adding that the MUL agreement could show an inflection in the railcar cycle.