Citi analyst Ben Mohr has maintained their bullish stance on WAB stock, giving a Buy rating on November 13.
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Ben Mohr has given his Buy rating due to a combination of factors that highlight Westinghouse Air Brake Technologies’ (WAB) strong position in the market. The company is well-positioned to benefit from several positive megatrends, including technology-driven productivity improvements and the ongoing consolidation in the rail industry, which is expected to shift volume from trucks to rail. Additionally, the replenishment of aging fleets provides a solid foundation for WAB’s backlog, with potential for further upside.
WAB’s increasing share of Class 1 capital expenditures, which is projected to grow from 26.6% in 2019 to 35.4% by 2025, underscores its expanding influence in the sector. The company is also poised to benefit from significant growth drivers, such as the Tier 4 upgrade runway, where a large portion of Class 1 fleets have yet to be upgraded. Furthermore, international opportunities present additional avenues for growth, with active negotiations underway in several key regions. These factors, combined with a strong backlog and potential for further multiple re-rating, contribute to Mohr’s positive outlook on WAB.
In another report released on November 13, Bank of America Securities also reiterated a Buy rating on the stock with a $233.00 price target.