Wabtec (WAB) PT Raised to $115 at Stifel Following GE Deal

Stifel raised its price target on Wabtec (NYSE: WAB) to $115.00 (from $106.00) while maintaining a Buy rating following the GE Transportation deal.

Analyst Michael Baudendistel commented, "We like the deal for numerous reasons and we have a hard time finding aspects not to like. Of course, if one were to nitpick, the deal does add to cyclicality and there may be some business loss to other OEMs, but we would counter that more WABTEC content in GE locomotives means more components sold at all points in the cycle and there is more service revenue in GE Transportation than many realize. In addition to putting more content in GE locomotives, we believe there is likely opportunity for facility consolidation in locations where locomotives are serviced. We like WAB even more after the call and our sense is that with few regulatory hurdles and potential for very significant accretion, shares are more attractively valued now than before the deal was announced."

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