Westport Innovations: We Expect Shares To Remain Rangebound, Says Deutsche Bank
In a research report published today, Deutsche Bank analyst Vishal Shah downgraded shares of Westport Innovations (NASDAQ:WPRT) from Buy to Hold and reduced price target to $8 (from $12), which still represents a potential upside of 38% from where the stock is currently trading.
Shah explained, “Weak oil price environment could continue to impact near term adoption of NG vehicles and uncertainty about timing of cash flow break-even could remain near-term headwinds for the stock. While we believe mgmt has kitchen-sinked guidance/expectations and is likely to rein in expenses/investments in order to reduce cash burn in the near term, we see limited near term catalysts. The company remains on track to achieve positive EBITDA break-even targets for 2015 and progress on warranty expenses remains encouraging. But until there is more evidence of EBITDA improvement or OEM/product announcements, we expect shares to remain rangebound.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Vishal Shah has a total average return of -15.4% and a 25.8% success rate. Shah has a -68.1% average return when recommending WPRT, and is ranked #3342 out of 3354 analysts.