J.P. Morgan Raises PT on WABCO to $66 (WBC)

J.P. Morgan is out with its report today on WABCO WBC, raising its PT from $49 to $66. In a note to clients, J.P. Morgan writes, "EPS of $1.01 was ahead of the preannounced $0.88-0.93 range, with operating performance about in line and tax adding $0.08. Initial 2011 guidance came in at $3.75-4.15, ahead of the Street's $3.70. We move to the high end of the range for 2011 ($4.15), and to $5.25 for 2012. This assumes ~25% incremental margins and 2012 European OE sales just ~5% below last peak, achievable but not necessarily conservative. Shares trade at ~12x our revised 2012E EPS, a ~15 discount to the EE/MI sector. Our new $66 Dec-11 PT assumes ~12.5x, a 10% discount to the group." Shares of WBC closed Friday at $62.23, up 8.76% from Thursday's close.