BofA is Bullish on Blue Bird Corporation (BLBD)

Core Insights - Blue Bird Corporation (NASDAQ:BLBD) is gaining attention from multiple financial institutions, with several analysts raising their price targets and maintaining positive ratings following strong earnings reports [1][2][3]. Financial Performance - For the fiscal 2026 first quarter, Blue Bird reported net sales of $333.1 million and GAAP net income of $30.8 million, resulting in diluted EPS of $0.94 [4]. - The company achieved adjusted EBITDA of $50.1 million with a margin of 15%, and sold 2,135 buses during this period [4]. - Revenue increased by $19.2 million year-over-year, attributed to pricing changes and product mix, while bus sales rose by 6.8% due to higher average fares [4]. - Gross profit improved by $10.9 million to $71.2 million, driven by stronger sales that offset rising costs [4]. Analyst Ratings and Price Targets - BofA raised Blue Bird's price target to $65 from $62 while maintaining a Buy rating, citing strong earnings [1]. - Needham increased the price objective from $70 to $78, also keeping a Buy rating, highlighting flat revenues but a bottom-line beat and increased full-year EBITDA projections [2]. - Barclays raised its price objective to $55 from $50, maintaining an Overweight rating after the Q1 release, noting that sales and profits exceeded expectations and backlog growth [3]. Market Position and Strategic Insights - Blue Bird operates in the school bus manufacturing sector and has a significant order backlog, with over 850 electric buses on firm order [4]. - The company is noted for its strategic positioning following recent M&A activity in the North American specialty vehicle industry, which has contributed to a stronger margin profile [2].