Maxwell Technologies: We May Have Been An Inning Or Two Too Early, Says Roth Capital
In a research report released this morning, Roth Capital analyst Philip Shen reiterated coverage with a Buy rating on Maxwell Technologies (MXWL) and reduced his price target to $15 (from $20), following mixed second quarter results.
Shen commented: “Earlier this week, we wrote about an attractive risk/reward for MXWL developing. We may have been an inning or two too early as the stock will likely be down on the weak Q3 guide. We, however, are looking for the negative sentiment cycle to bottom out over the near term, at which time we would accumulate shares. Consensus thinking is bearish, Q3 and Q4 numbers will likely be beatable, and we see more upside catalysts (better bus volumes vs. ultra low, reset bus expectations, an auto win, Corning partnership, truck fleet win, etc.) than downside catalysts (potential capital raise, though if it happens, it will likely be tied to materially higher bus volumes requiring greater working capital). We believe many of the downside risks (competitors gaining share in bus OEMs, reduced ultracap content in bus, ongoing local Chinese government budget constraints) are already in the stock, while the upside catalysts may take two to six months to play out”.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst Philip Shen has a -4.5% average return and a 31.7% success rate. Shen has a -32.7% average return when recommending MXWL, and is ranked #2995 out of 3195 analysts.