UPDATE: William Blair Downgrades WABCO Holdings to Market Perform, Reiterates $65 PT
In a report published Wednesday, William Blair & Company downgraded its rating on WABCO Holdings (NYSE: WBC) from Outperform to Market Perform, and reiterated its $65.00 price target.
William Blair noted, “While we believe the longterm fundamentals of WABCO Holdings remain attractive, the company's stock is close to our $65 price target, and European headwinds may pressure financial performance. WABCO is up almost 20% since we initiated with an Outperform rating on the stock on January 30, 2012, compared with the S&P 500's 7% gain and our coverage universe's 5% decline. This outperformance occurred despite pronounced weakness in Southern Europe; stable but tepid performance in its largest truck market, Germany; and weakening orders and production cuts out of Europe in the third and fourth quarters. While we still believe in WABCO's long‐term business prospects, which include a leading market position and a highly desirable increased content per vehicle story, driven by regulation and safety standards, we are moving to the sidelines because we believe the stock may be range‐bound following its year‐to‐date outperformance.”
WABCO Holdings closed on Tuesday at $61.66.
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