April 16 Shares of railroad equipment provider
Westinghouse Air Brake Technologies Corp could rise as
much as 20 percent as robust growth in the global mass-transit
market offsets a recent slump in freight volumes, Barron's said.
Last year, Westinghouse reported its first annual decline in
earnings since 2009, largely because of weak freight volumes.
Its stock has declined 2 percent in the past six months, even as
the S&P 500 saw roughly 9 percent gains.
Westinghouse's recent acquisitions have boosted its exposure
to the faster-growing mass-transit market, which will comprise
around 60 percent of its sales this year, Barron's said. That
will eventually help it boost its revenues, restoring its stock
price, Barron's said.
In 2016, it purchased European rival Faiveley Transport for
$1.7 billion. It has made more than 50 acquisitions in the past
The mass-transit market has grown at an annual rate of 4 to
5 percent in recent years and is expected to continue growing
quickly as emerging economies invest more in public transit and
Europe makes a renewed push for energy efficiency, Barron's
Between the immediate benefits of integrating Faiveley and
the longer-term benefits of more exposure to mass transit and
Europe, Westinghouse could see annual sales growth jump from low
to mid-single digits, Barron's said, citing T. Rowe Price
analyst Andrew Davis.
The freight business is expected to pick up, partly because
of a bottoming out of recent declines in coal volumes, Barron's
An increase in the use of automated trains could also boost
demand for Westinghouse's anti-collision technology, called
positive train control, or PTC, Barron's added.
The company's shares closed at $79.01 on Thursday.
(Reporting by Carl O'Donnell in New York; Editing by Peter