TD Cowen analyst Jeff Osborne has maintained their neutral stance on WPRT stock, giving a Hold rating on October 27.
Jeff Osborne’s Hold rating for Westport Fuel Systems is mainly influenced by two factors. Firstly, despite the fact that the company has been able to increase their revenues to $77 million, a 9% increase from the previous year, there has been a rise in net loss due to elevated operating expenses. Furthermore, while the firm has seen improvements in its gross margins for two consecutive quarters, the operating expenses still account for a substantial 33% of the revenues.
Another key point influencing his rating is the company’s recent agreements and ventures. Westport Fuel Systems has signed a contract with a global freight and rail transit OEM to adapt H2-HPDI for locomotive platforms, which is viewed as a positive move. Additionally, further information was provided around the Volvo Joint Venture (JV) and the company’s plans to improve margins. Although Westport has reduced its stake in its Indian JV, it is likely that the company will continue to operate in the country. These factors, combined with the firm’s top line strength driven by increased sales in varied departments, have contributed to Osborne’s Hold rating.
According to TipRanks, Osborne is a 2-star analyst with an average return of -0.5% and a 39.39% success rate. Osborne covers the Technology sector, focusing on stocks such as SolarEdge Technologies, Tesla, and Shoals Technologies Group.
In another report released on October 27, J.P. Morgan also maintained a Hold rating on the stock with a $6.00 price target.
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Westport Fuel Systems (WPRT) Company Description:
Westport Fuel Systems, Inc. engages in the engineering, manufacture, and supply of alternative fuel systems and components. It operates through the following segments: Transportation, Cummins Westport Inc. (CWI) Joint Venture, and Corporate. The Transportation segment designs, manufactures, and sells alternative fuel systems and components for transportation applications. The CWI Joint Venture segment serves the medium and heavy-duty on highway engine markets. The Corporate segment refers to the public company activities, corporate oversight, and general administrative duties. The company was founded on March 20, 1995 and is headquartered in Vancouver, Canada.
Read More on WPRT:
- Westport Fuel Systems Reports Third Quarter 2023 Financial Results
- Westport enters agreement to adapt hydrogen HPDI fuel system
- WPRT Upcoming Earnings Report: What to Expect?
- Westport to Issue Third Quarter 2023 Financial Results on November 7, 2023
- Westport completes H2 HPDI heavy transport demonstration
