UPDATE: J.P. Morgan Upgrades WABCO to Overweight
According to J.P. Morgan, WABCO (NYSE: WBC) 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.
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