Steady Doesn‘t Mean Slow; Re-rating to Continue as Conviction Builds on FY27; Reiterate OW

研报英文原文证据摘录

Steady Doesn‘t Mean Slow; Re-rating to Continue as Conviction Builds on FY27; Reiterate OW

Idea

July 23, 2026 01:18 AM GMT

Morgan Stanley & Co. LLCMWestinghouse Air Brake Technologies Corp | North Angel Castillo

America Equity Analyst

Angel.Castillo@morganstanley.com +1 212 761-1931

Stefan Diaz, CFA

Equity AnalystSteady Doesn't Mean Slow; Re- Stefan.Diaz@morganstanley.com +1 212 761-1834

Oliver Jiang

Research Associaterating to Continue as Conviction Oliver.Jiang@morganstanley.com +1 212 761-6458

Esther O Osinaiya

Research AssociateBuilds on FY27; Reiterate OW Esther.Osinaiya@morganstanley.com +1 212 761-3176

What’s Changed Westinghouse Air Brake Technologies Corp (WAB.N, WAB

Westinghouse Air Brake Technologies Corp (WAB.N) From To US)

Price Target $318.00 $355.00

Machinery & Construction | United States of America

Stock Rating Overweight

On top of record backlog levels, strong conviction in additional Industry View Attractive

large orders provides visibility into earnings in 2027 and beyond. PriceShr price,targetclose (Jul 22, 2026) $355.00$290.00

Shares should continue to re-rate higher from here. Reiterate Mkt cap, curr (mm) $49,129 52-Week Range $295.14-184.40

OW, PT to $355 (~21% upside) Fiscal Year Ending 12/25 12/26e 12/27e 12/28e

EPS ($)** 8.97 10.89 12.92 14.41

Key Takeaways Prior EPS ($)** - 10.61 12.81 14.31

P/E 28.0 31.2 25.7 22.8

2Q26 Adj. EPS beat by ~15c; raised Adj. EPS guidance by 30c to $10.60-10.90. EPS ($)§ 8.97 10.62 12.18 13.64

Div yld (%) 0.5 0.4 0.5 0.5

All-time high backlog of $30.9B (+41.7% YoY) and existing / incremental order Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare

announcements bolster FY27 setup. framework** = Based on consensus methodology

§ = Consensus data is provided by Refinitiv Estimates