In a report published Friday, D.A. Davidson & Co. analyst Brent Thielman reiterated a Buy rating on L.B. Foster Company (NASDAQ: FSTR), and raised the price target from $55.00 to $60.00.
In the report, D.A. Davidson & Co. noted, “Fundamentals within the rail sector remain very strong. Car loadings are up nearly 4% year-to-date (versus prior year-to-date loadings of +2%), shortages of railcars reflect broader-based demand, and capital investments at major railroads are increasing. With strong earnings among rail operators, increased traffic and likelihood equipment and infrastructure are pushed even harder, we see solid opportunities for L.B. Foster to rebuild Rail backlog (as a major contract rolls off) as the company benefits from investment in track maintenance and expansion. Rail Products represents ~60% of L.B. Foster sales.”
L.B. Foster Company closed on Thursday at $51.67.
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