"Same reasoning as HAIN. Our analyst has been right on it since 2015 and I’m trying to clean up my short book on pullbacks as my US Equity view is currently bullish," writes Hedgeye CEO Keith McCullough.
Here's our Industrials analyst Jay Van Sciver's most recent update:
"With the Wabtec (WAB) and Faiveley merger underway, we have revised our estimates and expectations for the merged company. We would bet that optimistic WAB holders have not delved into the investment trends and fleet demographics for the European transit market. The chart below is a snapshot of France's transit market. As you can see, the data is rolling over.
Our take is that Wabtec’s acquisition of Faiveley does not bring the ‘accretion’ needed to offset the long-cycle downturn in freight rail equipment investment. Instead, the deal likely offers a host of new risks, inflexibilities, and expenses."
Click here to read Van Sciver's original stock report on WAB.
