In a report released yesterday, Ken Hoexter from Bank of America Securities reiterated a Buy rating on Westinghouse Air Brake Technologies (WAB – Research Report), with a price target of $150.00.
Ken Hoexter has given his Buy rating due to a combination of factors related to Westinghouse Air Brake Technologies’ financial performance and future projections. Hoexter acknowledges the company’s solid fourth quarter adjusted earnings per share, which increased by 19% year-on-year, despite falling slightly short of expectations. The report highlights the adjusted operating income surpassing targets, indicating effective operational management. Moreover, Hoexter takes note of the company’s guidance for 2024, which includes a revenue growth forecast and anticipated margin expansion in both freight and transit segments, suggesting efficiency improvements and a strong outlook for profitability.
Hoexter’s optimism is further bolstered by the company’s robust order pipeline, the best since 2019, and sequential improvement in freight and transit backlogs. The expectation of cost savings from the “Integration 2.0” initiative, which is set to contribute significantly to the bottom line by 2025, adds to the positive sentiment. The price objective of $150 is justified by an earnings multiple that is slightly above the historical range, reflecting confidence in Westinghouse Air Brake Technologies’ accelerating earnings growth, international market penetration, and the potential to convert a strong backlog into actual sales. Despite a minor adjustment to the 2024 earnings per share estimate, Hoexter’s valuation maintains a bullish view on the company’s growth trajectory and ability to deliver shareholder value.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $155.00 price target.
WAB’s price has also changed moderately for the past six months – from $114.130 to $135.090, which is a 18.37% increase.
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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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