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Westinghouse Air Brake Technologies: Strong Five-Year Targets and Margin Expansion Despite Short-Term Challenges
Ratings

Westinghouse Air Brake Technologies: Strong Five-Year Targets and Margin Expansion Despite Short-Term Challenges

Ken Hoexter, an analyst from Bank of America Securities, reiterated the Buy rating on Westinghouse Air Brake Technologies (WABResearch Report). The associated price target was lowered to $214.00.

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Ken Hoexter’s rating is based on the company’s strong five-year targets and potential for robust margin expansion. Despite a slight miss on EPS and backlog that led to a 9% dip in stock price, Westinghouse Air Brake Technologies has set a new five-year outlook with goals for double-digit EPS growth and significant margin improvements. The company plans to achieve this through mid-single-digit organic sales growth and cost-saving measures from Integration 3.0 and portfolio optimization.
Additionally, the company’s revenue growth, while slightly below expectations, was offset by above-target Transit revenue. WAB’s strong backlog, M&A pipeline, and synergy opportunities also support the Buy rating. Despite lowering the price objective to $214, the valuation remains attractive due to anticipated improvements in margins and a solid order momentum.

WAB’s price has also changed moderately for the past six months – from $155.410 to $189.270, which is a 21.79% increase.