Gold bars to be exempt from tariffs, White House clarifies
Investing.com - KeyBanc raised its price target on Westinghouse Air Brake (NYSE:WAB) stock to $240.00 from $220.00 on Monday, while maintaining an Overweight rating on the rail technology company.
The price target increase reflects KeyBanc’s pro forma fiscal 2026-2027 model, which incorporates contributions from two pending acquisitions: Inspection Tech and Dellner. The Inspection Tech acquisition is expected to close at the end of the first half of 2025, while the Dellner closing timeline remains to be determined.
KeyBanc noted that Inspection Tech, a leader in Non-Destructive Testing and Remote Visual Inspection solutions, is expected to approximately double Westinghouse Air Brake’s Digital Intelligence total addressable market to $16 billion. The firm highlighted that Dellner, the market leader in safety-critical train connection systems for passenger rail, would add "accretive recurring revenues" through services and aftermarket opportunities tied to its global installed base of approximately 100,000 couplers and safety systems.
The research firm pointed to Westinghouse Air Brake’s growing free cash flow generation, which reached $1.6 billion in fiscal year 2024 compared to $1.0 billion in fiscal year 2023, as providing "ample liquidity" for organic initiatives, additional acquisitions, and shareholder returns through dividends and share buybacks.
KeyBanc described Westinghouse Air Brake as a "high-quality name that investors should want to own," particularly if there are indications of new locomotive builds in North America in the medium to long term.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.