Wabtec Secures Order From Singapore Mass Transit

Wabtec (Westinghouse Air Brake Technologies) announced on Jan. 24, that it has secured an order to supply 186 of its advanced Metroflexx brake systems and other key components on train cars for Singapore’s Mass Rapid Transit (MRT) Jurong line.

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This order marks Metroflexx brake system’s first deployment in Asia. The order also includes the supply of 372 roof-mounted air conditioning systems.

Lilian Leroux, President of Wabtec’s (WAB) Transit business, commented, “This order builds upon our long-standing partnership with the MRT. The solutions Wabtec is providing for these new transit cars will improve the rail system’s operations and the passenger experience.”

The company operates in two business segments: Freight and Transit and provides equipment, digital solutions, and component systems to freight and transit rail. In 3Q20, the transit business segment generated sales of $628 million and made up around 33% of the company’s total revenues. (See WAB stock analysis on TipRanks)

Cowen & Co. analyst Matt Elkott last month reiterated a Buy rating on the stock with a price target of $86.

Following the company’s 3Q20 results in October, Elkott commented , “With another decisive beat, raised guidance, and resilient backlog, the execution turnaround remains ongoing. The NA freight recovery bodes well for the company’s aftermarket business. Transit concerns are valid but a bit overblown, and a blue wave election could help. New power technologies and ESG have come to the forefront.”

The rest of the Street is bullish about the stock. The Strong Buy consensus shows 4 analysts recommending a Buy. The average price target of $92 implies 14.3% upside potential to current levels. That’s after shares jumped by about 11% over the past month.

According to TipRanks’ Smart Score system, Wabtec scores a 6 out of 10, which indicates that the stock is most likely to perform in line with market averages.