Zacks Upgrades Freightcar America to Buy with Analysts Forecasting 32.5% Upside
Freightcar America received a Zacks Rank #2 upgrade, signaling improved earnings prospects. Wall Street analysts project an average price target implying 32.5% upside, supported by positive earnings estimate revisions.
1. Freightcar America Upgraded to Zacks Rank #2 (Buy)
Zacks Investment Research has moved Freightcar America to a Rank #2 (Buy) from a Hold, citing a 15% upward revision to its fiscal 2024 earnings per share estimates over the past 30 days. The firm highlighted that three of the four analysts covering Freightcar America raised their full‐year earnings forecasts, driven by an uptick in orders for new gondola and hopper cars. Zacks noted that Freightcar America’s gross margins expanded by 240 basis points in the latest quarter, thanks to improved production efficiencies at its Roanoke, Virginia, facility.
2. Wall Street Analysts Predict 32.5% Upside for Freightcar America
Based on a consensus of 12 Wall Street analysts, Freightcar America’s average 12-month target price implies a 32.5% gain from current levels. Over the past two months, six analysts boosted their targets following stronger-than-expected backlog growth, which rose 18% sequentially in Q3. Analysts also raised full-year revenue forecasts by an average of 8%, reflecting higher demand in both the agricultural and industrial freightcar segments.