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Analyst: WABCO Could Get A Boost From Tesla's Semi

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Analyst: WABCO Could Get A Boost From Tesla's Semi
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Tesla Inc (NASDAQ: TSLA)’s Class 8 semi rollout is the bane of the trucking industry.

With early orders from the likes of Wal-Mart Stores Inc (NYSE: WMT) and J B Hunt Transport Services Inc (NASDAQ: JBHT), the automaker stands to poach market share from PACCAR Inc (NASDAQ: PCAR), Navistar International Corp (NYSE: NAV), Daimler AG, and Volvo AB ADR.

And it could prove a windfall for WABCO Holdings Inc. (NYSE: WBC), according to one analyst.

“It is unclear how some of the different component suppliers will fair from this announcement, but we think WABCO could be a potential winner if Tesla sources its ‘enhanced autopilot’ components from a third party,” Buckingham Research analyst Neil Frohnapple said in a Friday note.

Enhanced autopilot will be the standard in Tesla Semis and will include automatic emergency braking, lane keeping and collision warning — WABCO’s expertise. Tesla may call on the technology manufacturer as a supplier.

Tesla's transmission-less vehicle is seen to have no effect on Allison Transmission Holdings Inc (NYSE: ALSN), as it targets linehaul applications to which Allison has no exposure, Frohnapple said. (See Frohnapple's track record here.) 

Related Links:
Wall Street Weighs In On Tesla Semi, Roadster Unveiling
Chowdhry: Tesla's Competition Still 'Toast' Following Semi Event

Photo courtesy of Tesla. 

Latest Ratings for WBC

DateFirmActionFromTo
Jul 2018Morgan StanleyMaintainsOverweightOverweight
Jul 2018Stifel NicolausMaintainsBuyBuy
Jun 2018MizuhoInitiates Coverage OnNeutral

View More Analyst Ratings for WBC
View the Latest Analyst Ratings

Posted-In: Buckingham Research Neil FrohnappleAnalyst Color Analyst Ratings Best of Benzinga

 

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