new coverage rates Westport "sector perform" 2022-10-25 09:18 ET - In the News
The Globe and Mail reports in its Tuesday, Oct. 25, edition that RBC Dominion Securities analyst Chris Dendrinos rates Westport Fuel Systems "sector perform" in new coverage. The Globe's David Leeder writes that Mr. Dendrinos set a share target of $2.50 (U.S.). Analysts on average target the shares at $4.17 (U.S.) Mr. Dendrinos thinks Westport Fuel Systems has "a compelling technology that offers a cost effective way to reduce emissions for heavy-duty trucks, a historically challenging segment to decarbonize." Mr. Dendrinos sees near-term macroeconomic conditions continuing to weigh on Westport. He says in a note: "We believe improving commodity price dynamics is a catalyst that would make us more positive on our outlook in the future.... Westport is currently trading at 0.3 times enterprise value to NTM 12-month sales which is at the low end of its three-year historical range. We believe this reflects current macroeconomic conditions, headwinds from volatile commodity prices, inflation, and uncertainty around the outlook for near-term profitability. We believe there is upside near-term with an improving macro environment and financial performance, and long-term from the promising opportunity with hydrogen HPDI."