WABCO Holdings (WBC +0.9%) says it's been granted a license by Chinese authorities to re-manufacture air compressors in China for commercial and off-highway vehicles. The company's Reman Solutions is currently re-manufacturing air compressors locally for China National Heavy Truck Corporation and for the independent aftermarket in China, and it hopes to expand to add other products, subject to government approvals.
WABCO Holdings (WBC) gets an upgrade to Buy from Neutral at Goldman (PT $89 from $83). There's quite a bit to like here apparently as analyst Jerry Revich says new product sales are "accelerating," margins are expanding, "compares are favorable," and freight volumes are improving. SA contributor Gregory Vousvounis agrees, calling WBC "a classic example of a focused wide-moat company that excels in its markets and grows in double digits over time."
More Chinese companies are popping up in Detroit as they prepare for the eventuality of a major Chinese auto manufacturer selling cars in the U.S. For the most part, the firms are flying under the radar, but the numbers are starting to swell. The Detroit Chinese Business Association now has over 100 Chinese-owned businesses in its membership with the largest percentage geared toward supplying the automobile industry. It's a trend to watch for auto suppliers (AXL, ARMH, ALV, BWA, CLC, DAN, FDML, GNTX, JCI, MGA, TEN, TRW, WBC) used to having a home field advantage with the Big Three automakers.
Auto parts stocks take a turn higher with news from Fiat and General Motors boding well for manufacturing. Advancers: Remy International (REMY) +2.7%, WABCO Holdings (WBC) +2.4%, Federal-Mogul (FDML) +1.1%, Meritor (MTOR) +1.0%.
Wabco Holdings Inc is a provider of electronic, mechanical and mechatronic products for the commercial truck, trailer, bus and passenger car manufacturers. It also provides advanced braking, stability, suspension and air compressing systems.