logo
  Join        Login             Stock Quote

Westport Innovations (WPRT) Upgraded As 'Sector Performer' By CIBC

 April 23, 2012 10:37 AM


(By Balachander S) Westport Innovations Inc. (TSE:WPT) (Nasdaq: WPRT) shares were upgraded to "Sector Performer" from "Sector Underperformer" by CIBC World Markets Inc. analyst Michael Willemse.

"While we are still concerned about near-term losses and execution risks related to the ramp-up of Westport HD, these risks are now reflected in the share price and could be offset by higher sales growth & new JV announcements," Willemse wrote in a note.

The analyst has a price target of US$35.00 on shares of the Canada-based company, which provides engine and fuel system technologies using gaseous fuels.

[Related -Facebook Inc (FB): Traders Pick Up Call Options As Stock Rallies]

After rising 35 percent from the end of 2011 to about $45/share in late February 2012, the share price of Westport has declined by around 26 percent, largely due to the announcement on March 21 by Westport JV partner Cummins that the company was developing its own 15L spark-ignited heavy-duty engine, the analyst noted.

Willemse is of the view that the announcement could signal that Cummins is looking to eventually exit the CWI JV with Westport (the JV expires Dec 31, 2021). However, if Cummins still values the sales and marketing, R&D and brand name exposure from CWI, the JV could remain intact post-2021, the analyst noted.

"Regardless, Westport should still generate strong sales growth at both CWI and Westport Heavy Duty over the next few years. The earliest sales at CWI could be at risk is five years (nominal). The earliest sales of HDPI could be at risk of increased competition (as patents expire) is in the mid-2020's," Willemse wrote.

[Related -Another Company That Could 'Kill The Gasoline Engine']

The stock, which has been trading in the 52-week range between $19.29 and $49.68, retreated 4.35 percent to trade at $30.99 on Monday.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageMBIA Inc. (MBI) : BTI's $12 a Tough Task

MBIA Inc. (NYSE:MBI) is doing well on a day stocks are struggling The guarantee insurance company is the read on...

article imageUrban Outfitters, Inc. (URBN) Q2 Earnings Preview: A Snug Fit

Urban Outfitters, Inc. (NASDAQ:URBN) will hold a webcast to discuss its second quarter of fiscal-year 2015 read on...

article imageEstee Lauder Companies Inc. (EL) Q4 Earnings Preview: Options Player Betting On EL’s EPS Looking Pretty

Estee Lauder Companies Inc. (NYSE:EL) will release fiscal 2014 fourth quarter and full year financial read on...

article imageHerbalife Ltd. (HLF): 3 Reasons To Pay Attention to Recent Insider Buying

Well, well, well… it looks as if boardroom buyers viewed the recent selloff as an opportunity to buy. read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.