UPDATE: Stifel Initiates Coverage On WABCO On Mixed Factors

In a report published Tuesday, Stifel analyst Michael Baudendistel initiated coverage on WABCO Holdings (NYSE: WBC) with a Hold rating.

In the report, Stifel noted, “We are initiating coverage of WABCO Holdings Inc. (WBC) with a Hold rating on the company's common shares on the basis of valuation and a macro outlook in its core European market that appears tepid to us. We are establishing a fair value estimate of $112 (or 14.0x our 2016 EPS estimate of $8.00) that provides 5% upside relative to the most recent closing price, which is insufficient upside potential for a Buy rating under the Stifel rating system.

"However, we believe the company's shares represent an attractive longer-term holding and an appropriate name to be included in a mid-cap growth portfolio. We would likely be inclined to revise our rating if there was a significant pull back in the company's share price, or our outlook for global truck and bus production strengthened, all else being equal.”

WABCO closed on Monday at $108.29.