UPDATE: J.P. Morgan Reiterates Overweight Rating, Raises PT on WABCO
In a report published Monday, J.P. Morgan & Co. reiterated its Overweight rating on WABCO (NYSE: WBC), and raised its price target from $65.00 to $75.00.
J.P. Morgan noted, “We view WBC as a high quality cyclical with (a) an attractive content growth story, (b) a favorable competitive structure, and (c) a strong management team that has managed well through the past downturn. We also see a positive from the 2010 resolution of the EU fine, which increases financial flexibility going forward. Our Overweight rating is based on a view that valuation now sufficiently prices in risks associated with their key European truck market, without discounting the longer term earnings power. When markets stabilize, we also see the opportunity for a higher relative multiple, reflecting the long term growth potential from content gains.”
WABCO closed on Friday at $61.51.
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