Wabtec (WAB) PT Bumped to $90 at Stifel as Faiveley Acquisition Approved by EC
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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."
Shares of Wabtec closed at $81.16 yesterday.
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