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UPDATE: William Blair & Company Upgrades WABCO on Multiple Positive Factors


In a report published Tuesday, William Blair & Company analyst Lawrence De Maria upgraded the rating on WABCO Holdings (NYSE: WBC) from Market Perform to Outperform, and raised the price target from $90.00 to $105.00.

In the report, William Blair & Company noted, “We view Wabco as a premium story driven by increasing content, higher market penetration, and greater market share leading to market outgrowth amid a challenging period for capital goods stocks. While we would not be surprised to see the stock consolidate for a while given some near-term noise regarding the European truck pre-buy ahead of Euro 6 in January and concerns over emerging market truck demand, we are inclined to look beyond a few volatile quarters and focus on the longer-term, secular content story. The principal reasons for our upgrade are therefore based on the market outgrowth story and the assumption that Wabco will grow EPS as it adds content to commercial vehicles around the world and from share repurchases that will accelerate, which will allow the company to grow EPS at a double-digit rate next year and beyond. With these favorable attributes, combined with a history of solid execution and the prospects for markedly higher EPS as the cyclical nature of the story kicks in (2015-plus), we believe Wabco's multiple will expand as well. When we compare Wabco across our coverage universe, it clearly stands out as a better investment candidate because of its cyclical and structural EPS growth potential.”

WABCO closed on Monday at $89.47.

Latest Ratings for WBC

Mar 2019CitigroupDowngradesBuyNeutral
Mar 2019RBC CapitalDowngradesOutperformSector Perform
Mar 2019Morgan StanleyMaintainsEqual-WeightEqual-Weight

View More Analyst Ratings for WBC
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