Stifel analyst Michael Baudendistel downgraded his rating for FreightCar America, Inc. (NASDAQ:RAIL) to a Hold rating after he tempering his Industrial industry outlook.

The analyst also downgraded his 2018 estimates for the company given its “lack of diversification outside of railcar manufacturing” and its low margins. Baudendistel expects FreightCar to be more affected than its competitors during an industry downturn. Due to this, he predicts the company will underperform over the next few years and will have a difficult time turning a profit.

According to TipRanks, the analyst has a success rate of 54% with an average return of 3.2% per recommendation.