KNBHF - Wabtec Makes Its Third-Largest Deal And Rail Continues To Recover

• Wabtec's deal for Nordco looks like a relatively low-risk way to expand maintenance of way offerings, with added revenue synergy potential from taking Nordco's offerings worldwide.
• The proposed infrastructure bill includes potentially significant funding support for transport and freight rail, including modernization of rolling stock, track, and signaling.
• Mid-single-digit long-term FCF growth can support a fair value around $100 in 2023 and a mid-to-high single-digit return thereafter; a decent but perhaps not compelling return opportunity.

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