BofA raises Wabtec PT on strong freight demand

Westinghouse Air Brake Technologies

27/06/2025 14:21

** BofA Global Research raises PT on locomotive parts maker Wabtec WAB.N to $231 from $217, a premium of 12% from the stock's last close

** Reiterates 'buy' rating

** Says co has strong 2025 revenue and earnings goals, supported by a growing order backlog and solid freight demand

** Says WAB is cutting costs, streamlining its portfolio and being proactive to mitigate tariff impact

     ** But BofA expects margin pressure to persist in the second half of 2025 due to a shift from high-margin services to lower-margin equipment sales

 ** A sharp drop in 2025 railcar build forecasts may slightly weigh on component revenues, brokerage says

 ** Seven of 13 brokerages rate the stock "buy" or higher, six "hold" ; their median PT is $220- data compiled by LSEG

** As of last close, stock up 8.8% YTD

 (Reporting by Apratim Sarkar)

 ((Apratim.Sarkar@thomsonreuters.com))