In recent developments, the distribution of federal funds initially set aside for clean school buses has faced delays, impacting the market performance of companies like Blue Bird (BLBD, Financial), a prominent manufacturer of electric school buses. The Environmental Protection Agency (EPA), responsible for allocating these funds, has begun to release some of the money. However, the pace has been sluggish, causing disruptions in the industry.
This pause and subsequent slow rollout of funds began in late January when the federal government halted disbursements, leading to concerns among bus producers, dealers, and school officials. Although the EPA maintains that it isn't obstructing the release of already granted funds, it has not clarified the future handling of remaining resources.
As a result of these funding uncertainties, Blue Bird's stock (BLBD, Financial) experienced a minor decline, dropping approximately 2% to $33.12 in afternoon trading on Wednesday. The situation underscores the potential economic impacts of federal funding policies on companies involved in the clean energy sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 7 analysts, the average target price for Blue Bird Corp (BLBD, Financial) is $53.00 with a high estimate of $68.00 and a low estimate of $36.00. The average target implies an upside of 59.78% from the current price of $33.17. More detailed estimate data can be found on the Blue Bird Corp (BLBD) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Blue Bird Corp's (BLBD, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Blue Bird Corp (BLBD, Financial) in one year is $32.10, suggesting a downside of 3.23% from the current price of $33.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Blue Bird Corp (BLBD) Summary page.
