08:30 AM EDT, 09/18/2026 (MT Newswires) -- BofA Global Research raised the price objective for Knorr-Bremse (KBX.F), anticipating margins at its Rail division to overshoot expectations amid forecasts that China Rail sales would exceed targets. The German braking systems manufacturer's China Rail sales are projected to reach 1.03 billion euros by 2030, higher than the management's goal of 900 million euros, according to a Friday note. "We forecast Rail margins to reach 20.9% by 2030, c.90bp above management's target and 110bps ahead of consensus. Our AM/OE margins analysis shows Aftermarket (55% of sales in 2030) to reach c.28% margins, while OE margins recover from 7.8% in 2026 to 12.8% in 2030 as China volumes return, and EU market accelerates," the research firm said. "We expect Knorr-Bremse (KB) Rail to grow faster than management's targets, reinforcing our view that Rail is the group's highest-quality business and deserves a premium multiple. Growth Beyond 2030 targets a 7% Rail sales CAGR in 2026-30, or c.8% excluding the divested HVAC business, well ahead of UNIFE's expected 3-4% market growth and the c.5-6% CAGR targeted under the previous strategy." Taking this into account, the price objective was increased to 133 euros from 130 euros, while the stock's buy rating was maintained. Analysts also updated their earnings estimates over the 2026 to 2028 period, including higher EPS and sales.

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