Author: Matt Elkott

For Railcar Buyers, Time to Pull the Trigger, Soon

Takeaways from Cowen and Company’s recent Rail Equipment Webinar show that locomotive upgrades remain solid, as traffic growth continues. Elevated inquiries for newly built railcars should begin to translate into orders gradually, despite the steel premium. Lessors are well-positioned as freight demand rises, railcar supply decreases and new builds fall short of replacement levels this year.

Matt Elkott, Cowen and Company OEM Transportation Analyst

Greenbrier ‘Ready for a Railcar Demand Recovery’: Cowen

At Cowen and Company, we expect North American railcar demand to recover in 2021. One of the best-positioned suppliers? The Greenbrier Companies (GBX), with more than a 40% manufacturing share following the acquisition of ARI. Railcar markets in Europe and Brazil are also improving. All of this plus the cost-cutting measures GBX has taken make it our top 2021 pick.

Election ‘Blues’ Could Benefit Rail Suppliers

Rail transit rail equipment is among the transportation equipment subsectors most likely to benefit from a potential “Blue Wave” in January following a Joe Biden/Kamala Harris win and the Democrats flipping enough seats in the U.S. Senate in the November Presidential election to take control of that chamber.* As well, a power shift in Washington could drive a public transit service recovery in the U.S.