UPDATE: J.P. Morgan Upgrades WABCO to Overweight

According to J.P. Morgan, WABCO

is upgraded to Overweight. J.P. Morgan said that we are upgrading WBC to OW, as macro concerns create a unique opportunity to buy a high-quality franchise at a steep discount to longer-term earnings power. “We had been on the sidelines waiting for risks to be digested, and recognize we may be early, but are hesitant to wait versus a valuation that already discounts significant downside. We see 40% upside/20% downside near term, with potential for stock to double over 2-3 years, a risk/reward that stands out even in the context of WBC's cyclicality.” WABCO closed yesterday at $41.31.