Credit Suisse Reiterates an 'Outperform' on WABCO Holdings (WBC); Not Even Brakes Can Stop WABCO; Raising Estimates and PT
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Price: $136.46 --0%
Rating Summary:
5 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 22 | New: 20
Rating Summary:
5 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 22 | New: 20
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Credit Suisse reiterates an 'Outperform' on WABCO Holdings (NYSE: WBC), PT increased from $74 to $85.
Credit Suisse analyst says, "WBC remains our top growth idea for '11 as the secular story associated with tightening safety standards continues to accelerate. With additional content wins looming, we are increasingly confident in WBC's ability to outgrow the market at an 8-10% CAGR through '15. While we have increased our estimates significantly, there is still scope for estimates to go materially higher. As an example, we believe recent contract wins alone have the potential to drive China sales in excess of $500M by '13, though we only model ~$290M (vs. ~$200M in '11). Our new $85 target price (old: $74) assumes 14.5x (vs. 13.5x prior) our FY13 EPS estimate of $6.45, discounted back. We believe this mid-cycle multiple is appropriate reflecting WBC's best-in-class management team, >40% ROIC and net cash position. We are raising our 2011/2012/2013 EPS estimates to $4.50/$5.50/$6.45 from $4.15/$5.15/$6.00 respectively."
For more ratings news on WABCO Holdings click here and for the rating history of WABCO Holdings click here.
Shares of WABCO Holdings closed at $71.74 yesterday.
Credit Suisse analyst says, "WBC remains our top growth idea for '11 as the secular story associated with tightening safety standards continues to accelerate. With additional content wins looming, we are increasingly confident in WBC's ability to outgrow the market at an 8-10% CAGR through '15. While we have increased our estimates significantly, there is still scope for estimates to go materially higher. As an example, we believe recent contract wins alone have the potential to drive China sales in excess of $500M by '13, though we only model ~$290M (vs. ~$200M in '11). Our new $85 target price (old: $74) assumes 14.5x (vs. 13.5x prior) our FY13 EPS estimate of $6.45, discounted back. We believe this mid-cycle multiple is appropriate reflecting WBC's best-in-class management team, >40% ROIC and net cash position. We are raising our 2011/2012/2013 EPS estimates to $4.50/$5.50/$6.45 from $4.15/$5.15/$6.00 respectively."
For more ratings news on WABCO Holdings click here and for the rating history of WABCO Holdings click here.
Shares of WABCO Holdings closed at $71.74 yesterday.
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