BUZZ-BofA raises Wabtec PT on strong freight demand

Reuters
06-27
BUZZ-BofA raises Wabtec PT on strong freight demand

** BofA Global Research raises PT on locomotive parts maker Wabtec WAB.N to $231 from $217, a premium of 12% from the stock's last close

** Reiterates 'buy' rating

** Says co has strong 2025 revenue and earnings goals, supported by a growing order backlog and solid freight demand

** Says WAB is cutting costs, streamlining its portfolio and being proactive to mitigate tariff impact

** But BofA expects margin pressure to persist in the second half of 2025 due to a shift from high-margin services to lower-margin equipment sales

** A sharp drop in 2025 railcar build forecasts may slightly weigh on component revenues, brokerage says

** Seven of 13 brokerages rate the stock "buy" or higher, six "hold" ; their median PT is $220- data compiled by LSEG

** As of last close, stock up 8.8% YTD

(Reporting by Apratim Sarkar)

((Apratim.Sarkar@thomsonreuters.com))

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