Bank of America Securities analyst Ken Hoexter reiterated a Buy rating on Westinghouse Air Brake Technologies today and set a price target of $233.00.
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Ken Hoexter has given his Buy rating due to a combination of factors that highlight significant growth opportunities for Westinghouse Air Brake Technologies. The aging North American locomotive fleet presents a substantial market for Wabtec, as nearly a quarter of these locomotives still operate on direct current (DC) systems. This creates an $8 billion potential market for DC to alternating current (AC) conversions, which Wabtec is well-positioned to capitalize on.
Furthermore, Wabtec’s EVO platform offers compelling conversion economics by replacing three DC units with two AC units, leading to notable fuel and maintenance cost savings. The company’s robust backlog, improving margins, and potential for mergers and acquisitions further bolster its growth prospects. These factors, combined with a strong earnings outlook, justify the increased price objective of $233 and support the Buy rating.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of WAB in relation to earlier this year.