UPDATE: Jefferies Color on FreightCar America PT Decrease

Jefferies, which lowered its PT on shares of FreightCar America (NASDAQ: RAIL), is providing some color on the stock.

“We assume coverage of RAIL with a Buy rating (vs. Buy under prior analyst coverage) given our views on current valuation in the context of peak-cycle earnings power,” Jefferies writes. “Our calendar year-end 2011e target price of $30 (represents 19.7% upside from Tuesday's close of $25.06) is based on estimated peak-cycle earnings power of $4.00 to $4.50, at a targeted peak-cycle P/E of 8x, discounted back 18 months at an estimated ‘required' market rate of return of 10%.”

FreightCar America closed Tuesday at $25.06.