JPMorgan has commenced its analysis of Wabtec (WAB, Financial) with a Neutral rating, setting a price target of $175. Wabtec, known for its freight locomotives, railcar technology, and aftermarket services for freight and passenger rail networks, is facing a landscape fraught with economic challenges.
The financial institution highlights potential hurdles that could impact Wabtec, noting the looming threat of a U.S. recession alongside tariff-induced inflationary pressures on profit margins. These factors contribute to JPMorgan's projections for Wabtec's fiscal results for 2025 and 2026, which are anticipated to be 4% and 8% below the market consensus, respectively.
Given these circumstances, JPMorgan suggests that the stock's potential risk and reward are currently balanced, reflecting a cautious outlook on its future performance amid economic uncertainties.
