Allison Poliniak, an analyst from Wells Fargo, maintained the Buy rating on Westinghouse Air Brake Technologies (WAB – Research Report). The associated price target is $150.00.
Allison Poliniak has given Westinghouse Air Brake Technologies a Buy rating due to a combination of factors that suggest a promising outlook for the company over the next few years. Poliniak’s optimism is rooted in the company’s structural growth opportunities across its segments, which are expected to provide a solid baseline for underlying earnings growth. Furthermore, the analyst perceives the company’s financial guidance for FY24 to be conservatively set, implying that actual performance could outpace expectations. This potential for outperformance is supported by projected increases in both revenue and margins, particularly as Westinghouse Air Brake Technologies plans to divest from low margin product lines, which is anticipated to structurally improve margins going forward.
Poliniak’s analysis also takes into account the robust backlogs in sales which remain healthy and are likely to fuel low double-digit to mid-teens earnings growth in 2024. Despite some margin pressure within the Freight segment, management expects margin expansion in FY24. Additionally, the Transit segment is performing exceptionally well, with revenue and margin surpassing expectations and a strong sequential increase in backlog, which bodes well for future earnings. Poliniak’s report concludes with an increased EPS estimate and a raised price target, reflecting confidence in the company’s earnings outlook and its ability to achieve sustainable growth.
Poliniak covers the Industrials sector, focusing on stocks such as JB Hunt, Ryder System, and RXO, Inc.. According to TipRanks, Poliniak has an average return of 12.2% and a 65.34% success rate on recommended stocks.
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Westinghouse Air Brake Technologies (WAB) Company Description:
Westinghouse Air Brake Technologies Corp. engages in the provision of equipment, systems, and value-added services for the rail industry. It operates through the following segments: Freight and Transit. The Freight segment involves in the manufacture and offers services components for new and existing locomotives and freight cars; supplies rail control and infrastructure products such as electronics, positive train control equipment, and signal design and engineering services; overhauls locomotives; and provides heat exchangers and cooling systems for rail and other industrial markets. The Transit segments includes the manufacture and providing services components for new and existing passenger transit vehicles, including regional trains, high speed trains, subway cars, light-rail vehicles, and buses; supplies rail control and infrastructure products such as electronics, positive train control equipment, and signal design and engineering services; builds new commuter locomotives; and renovate passenger transit vehicles. The company was founded in 1869 and is headquartered in Pittsburgh, PA.
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