Evaluating Blue Bird (BLBD) After Clean Bus Solutions Exit and New Propane Bus Deal

Blue Bird (BLBD) recently announced it would wind down its Clean Bus Solutions joint venture. This strategic step coincided with new propane bus sales to Guilford County Schools. Both updates reflect evolving priorities for the company.

See our latest analysis for Blue Bird.

Blue Bird’s latest moves come at a time when momentum in its shares remains strong, with a 38.9% year-to-date share price return and three-year total shareholder return of 466%. Recent executive appointments and clean transportation deals suggest confidence from both management and customers, which supports that positive trend.

If Blue Bird’s growth streak caught your attention, it might be the right moment to broaden your search and discover fast growing stocks with high insider ownership

With shares sitting 12% below analyst targets and robust recent gains, the question for investors is whether Blue Bird remains undervalued, or if the current price already reflects all of its future growth potential.

Most Popular Narrative: 9.2% Undervalued

Compared to Blue Bird's last close of $53.67, the most-watched narrative estimates fair value at $59.12. This sets the stage for debate around future growth, margin expansion, and just how much optimism is already priced in.

Blue Bird's leadership in alternative-powered buses (with over 60% of unit mix and exclusive propane offerings) positions it for incremental margin gains versus competitors, particularly as higher-margin EV and alt-fuel products become a greater share of sales. This positively impacts gross margins and owner loyalty.

Read the complete narrative.

Curious about the combination of aggressive cost controls, surprising margin trends, and future multiples that underpin this valuation? The assumptions driving this number push conventional boundaries for vehicle manufacturers. Discover which projections make up the backbone of the consensus fair value and challenge industry standards.

Result: Fair Value of $59.12 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, a reduction in government incentives or a disruption in school district spending could quickly curb Blue Bird’s growth narrative and affect future profitability.

Find out about the key risks to this Blue Bird narrative.

Build Your Own Blue Bird Narrative

If you want to dig into the numbers and build your own take on Blue Bird, you can do so in just a few minutes. Simply put, the tools are there for you. Do it your way

A great starting point for your Blue Bird research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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