Wabtec (WAB) PT Bumped to $90 at Stifel as Faiveley Acquisition Approved by EC

October 4, 2016 12:34 PM EDT
Get Alerts WAB Hot Sheet
Price: $88.88 +2.50%

Rating Summary:
    12 Buy, 4 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 28 | Down: 20 | New: 17
Trade WAB Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

Stifel analyst Michael Baudendistel reiterated a Buy rating and bumped his price target on Wabtec (NYSE: WAB) to $90.00 (from $85.00) after the company received approval from the European Commission for their proposed combination, pending the divestiture of Faiveley Transport Gennevilliers, a braking unit which generates roughly €12 million in annual revenue (or 1% of total Faiveley company revenue of approximately €1.2 billion).

Baudendistel commented, "While reports had surfaced in the media last week that the companies were expected to receive approval shortly from the EC, we view additional detail on the divestiture today as a positive as it confirms Wabtec management's view that the deal should be approved and that any potential divestitures being considered would have 'no material impact'. Wabtec continues to expect the deal to close in 4Q16. We are reiterating our Buy rating on Wabtec, which remains our best idea in the rail equipment space, and increasing our target price from $85 to $90 to reflect the reduced regulatory overhang following the EC approval and minimal required divestiture."

For an analyst ratings summary and ratings history on Wabtec click here. For more ratings news on Wabtec click here.

Shares of Wabtec closed at $81.16 yesterday.



Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In






Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Stifel

Add Your Comment