Roth Capital Reiterates Buy Rating, $90 PT On Power Solutions

In a research report released this morning, Roth Capital analyst Philip Shen reiterated coverage with a “Buy” rating on Power Solutions International, Inc. (PSIX), and a price target of $90.00 following investor meetings with PSIX’s management.

“We recently hosted investor meetings with Eric Cohen, COO, and Dan Gorey, CFO, and came away incrementally more positive on the diverse set of opportunities ahead for PSIX. Oil & gas and forklift end markets remain robust. While on road opportunities continue to be quite promising, we remain conservative with our 2015 estimate given the uncertainty of the timing of on road adoption.

We currently forecast 2015 revenues of $424mn vs. consensus of $476mn and a street-high estimate of $540mn. Our 2015 forecast is currently the low on the street, and we maintain it for conservatism. We think there is upside to our number, but we believe development cycles for trucks and buses adopting PSIX’s engines may potentially take longer-than-expected. In our base case for 2015, we assume limited on road revenues for conservatism. We believe the on road opportunity for PSIX is massive, but the on road development cycle can take years given the prototyping, testing, and certification required”, Shen wrote.

According to TipRanks, which measures analysts and bloggers success rate based on how their calls perform, analyst Philip Shen currently has a one-year average return of 0.2% and a 57% success rate. He is ranked #2307 out of 3118 analysts.

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