FreightCar America Shares Fall After Downgrade

NEW YORK (AP) — FreightCar America Inc. fell Tuesday after an analyst downgraded the stock, saying shares of the railcar manufacturer were too expensive to warrant a "Buy" rating.

Analyst Paul Bodnar cut the stock to "Neutral" after it topped his $21 price target.

In a note to clients, he said he expects the company to continue outperforming its peers as the downturn in the market drags on. The analyst thinks sales of coal cars will fall less than others because of the strong financial standing of the railroads and utility companies, who use the coal to generate electricity.

But Bodnar doesn't think shares will grow much more in the near future. He expects the weak railcar market to continue through at least the end of next year.

Shares fell 83 cents, or 3.9 percent, to $20.35 in afternoon trading.