H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Westport Fuel Systems (WPRT – Research Report) today and set a price target of $22.00.
Amit Dayal has given his Buy rating due to a combination of factors surrounding Westport Fuel Systems’ strategic initiatives and market position. Despite lowering the price target to $22.00 due to a reduction in 2024 revenue projections and current visibility concerns, Dayal acknowledges the company’s ongoing cost restructuring and the establishment of a joint venture with Volvo as pivotal to its transition. This JV is expected to significantly ramp up operations in the second half of 2024, contributing to the company’s growth. Additionally, the company’s progress in hydrogen initiatives and compliance with new zero-emissions regulations in Europe are seen as positive drivers, with the potential to generate substantial revenues through 2028.
Moreover, Dayal perceives the expected steady margin improvements as a fundamental catalyst for stock performance. Although the first quarter of 2024 showed a decrease in OEM revenues and a slight decline in gross margin, the increase in IAM revenues and the reduction in adjusted EBITDA loss from the previous quarter suggest operational resilience. The company’s efforts in developing markets for its HPDI technology in the rail and marine sectors, despite being long-term plays, also contribute to the optimistic outlook. In consideration of these elements, Dayal maintains a Buy rating, indicating confidence in Westport Fuel Systems’ future performance despite near-term challenges.
According to TipRanks, Dayal is an analyst with an average return of -15.6% and a 25.56% success rate. Dayal covers the Industrials sector, focusing on stocks such as Plug Power, Ceco Environmental, and Fuel Tech.
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Westport Fuel Systems (WPRT) Company Description:
Westport Fuel Systems, Inc. engages in the engineering, manufacture, and supply of alternative fuel systems and components. It operates through the following segments: Transportation, Cummins Westport Inc. (CWI) Joint Venture, and Corporate. The Transportation segment designs, manufactures, and sells alternative fuel systems and components for transportation applications. The CWI Joint Venture segment serves the medium and heavy-duty on highway engine markets. The Corporate segment refers to the public company activities, corporate oversight, and general administrative duties. The company was founded on March 20, 1995 and is headquartered in Vancouver, Canada.
