The Zacks Analyst Blog Blue Bird, BYD Co and Dorman

Core Viewpoint - Wall Street shows optimism towards auto stocks such as Blue Bird Corp, BYD Co. Ltd., and Dorman Products, which have received favorable broker recommendations and have outperformed the broader Zacks auto sector year-to-date [1][2]. Group 1: Blue Bird Corp (BLBD) - Blue Bird is a school bus manufacturer with a focus on alternative fuel and electric vehicle (EV) buses, benefiting from the U.S. government's push for EV adoption in public schools [3][4]. - The company has a significant market opportunity, with approximately 90% of U.S. school buses still diesel-powered, and it currently has a backlog of 5,200 units [4]. - The Zacks Consensus Estimate indicates sales growth of 18% for fiscal 2024 and 12% for fiscal 2025, with EPS growth of 216% and 10% for the same periods, respectively [5]. - Six out of seven brokers covering BLBD have Strong Buy recommendations, resulting in an attractive average broker recommendation (ABR) of 1.14, with a target price suggesting a 17.55% upside [5][6]. Group 2: BYD Co. Ltd. (BYDDY) - BYD is a leading electric vehicle company in China with a vertically integrated structure, enhancing its competitive edge [7]. - The company has launched new technologies, including the DM 5.0 hybrid system and e-Platform 3.0, aimed at producing more affordable and efficient EV models [7]. - The Zacks Consensus Estimate projects sales growth of 22% for 2024 and 21% for 2025, with EPS growth of 17% and 24%, respectively [8]. - All six brokers covering BYDDY have Strong Buy ratings, resulting in an ABR of 1, with a target price indicating a 19.32% upside [9]. Group 3: Dorman Products (DORM) - Dorman Products operates in the motor vehicle aftermarket industry, focusing on replacement and upgrade parts, benefiting from the increasing age of vehicles [10]. - The acquisition of Super ATV has positively impacted Dorman's prospects, and the company maintains a strong balance sheet with a manageable debt-to-capitalization ratio of 31% [10]. - The Zacks Consensus Estimate indicates sales growth of 4% for both 2024 and 2025, with EPS growth of 35% and 8%, respectively [11]. - Of the three brokers covering DORM, two have Strong Buy ratings, resulting in an ABR of 1.67 [11][12].