WABCO Holdings A 'Best-In-Class Story' Despite Brazil/Russia Weakness, KeyBanc Says

In a report published Monday, KeyBanc analyst Hammond maintained an Overweight rating on

, while raising the price target from $135 to $140. WABCO's continues to be a growth story but its FY15 performance is expected to be negatively impacted by incremental weakness in Brazil and Russia. The company's key growth markets,namely Western Europe, North America and India, remain intact. "WBC has achieved four years of MSD outgrowth vs. the industry. We expect to see an inflection in 4Q15 driven by various government mandates and content wins for WBC, which we believe can deliver growth >10% vs. its markets in 2016," analyst Hammond mentioned. In the report KeyBanc noted, "…the company's upcoming mandates in Europe (Advanced Emergency Braking Systems and Lane Departure Warning Systems on all new commercial vehicles) and India (Anti-lock Braking Syste n all medium & heavy trucks and buses) are set to take effect in the Oct./Nov. " This is expected to increase WABCO's content per vehicle. Other contracts that could boost the company's future include China's third wave of ABS coverage in mid-next year. WABCO's modular braking system platform is being received well and is expected to drive the company's new OE relationships. "We are encouraged with WBC's new customer wins, which should help bolster the Company's industry outgrowth in 2016," Hammond added. The EPS estimate for FY15 has been reduced from $5.90 to $5.80.