Blue Bird price target lowered to $49 from $66 at Needham

Needham analyst Chris Pierce lowered the firm’s price target on Blue Bird (BLBD) to $49 from $66 but keeps a Buy rating on the shares after its Q1 results and guidance. The trajectory of subsidized EV units has become the overarching story, driving multiple compression, though the firm’s assumed 8-times expected EBITDA multiple implies a “compelling risk/reward” when looking at Blue Bird’s historical multiple and giving the company minimal credit for further EV unit growth, the analyst tells investors in a research note.