MLV Initiates Hold On Westport, Sees 24% Upside For Stock
In a research report released today, MLV analyst Carter Driscoll initiated coverage on shares of Westport Innovations (NASDAQ:WPRT) with a Hold rating and a $7 price target, which represents a 24% upside from where the stock is currently trading.
Driscoll wrote, “WPRT develops engine and fuel system technologies (engines, fuel systems and components) utilizing gaseous fuels. Its products enable petroleum-based fuel engines to primarily use cheaper and cleaner compressed (CNG) and liquefied (LNG) natural gas. We believe WPRT will benefit from the substitution of natural gas for diesel in light-duty (LD), medium-duty (MD), heavy-duty (HD) and high horsepower (HHP) transportation applications but expect the displacement to take place over several years. The company has relationships and development programs at various stages (but without a lot of transparency) with most of the major global engine, truck and auto OEMs, so we see the market opportunity as very robust. However, the initial market adoption, in particular by truck fleet operators, has been slower than many expected. We believe there are catalysts in 2015 that should re-energize investors’ enthusiasm for the shares but believe the stock may be range bound for 2-3 quarters.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Carter Driscoll has a total average return of -8% and a 37.5% success rate. Driscoll has a -75% average return when recommending WPRT, and is ranked #2825 out of 3352 analysts.