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Investing.com - Noble Capital has raised its price target on FreightCar America (NASDAQ:RAIL) to $16.00 from $13.50 while maintaining an Outperform rating on the stock. The company’s shares currently trade at $11.50, having delivered an impressive 254% return over the past year. According to InvestingPro data, FreightCar America maintains strong financial health with a current ratio of 1.6.
The price target increase reflects Noble Capital’s positive outlook on the company’s cash flow growth potential, which it expects to be driven by market share growth, new product introductions, and margin expansion.
Noble Capital believes FreightCar America intends to retain its recently gained market share in the railcar manufacturing sector.
The research firm also noted it considers it "more likely that a fifth production line will be added to accommodate incremental tank car orders," suggesting potential production capacity expansion.
FreightCar America manufactures railroad freight cars and railcar components in North America, with the company working to strengthen its position in the railcar market through operational improvements.
In other recent news, FreightCar America reported its first-quarter 2025 earnings, which showed a notable shortfall in both earnings per share (EPS) and revenue compared to forecasts. The company posted an EPS of $0.05, missing the expected $0.11, and revenue reached $96.3 million, falling short of the anticipated $125.18 million. Despite these results, there was a surprising stock surge in after-hours trading, indicating investor optimism about future growth and strategic plans. Additionally, FreightCar America disclosed the outcomes of its Annual Meeting of Stockholders. The meeting included the election of Class II directors, with Jesús Salvador Gil Benavides and Rodger L. Boehm receiving significant support for their three-year terms. These developments reflect ongoing changes and investor interest in the company.
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