Jefferies Highlights Positives in Westport Innovations (WPRT) Following Recent Visit
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Price: $1.81 --0%
Rating Summary:
8 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
Rating Summary:
8 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 25
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Jefferies is maintaining its Buy rating and $38 price target on shares of Westport Innovations (NASDAQ: WPRT) following a recent visit to Westport's JV with Weichai in Weifang, China.
The firm comments that PetroChina and CNOOC have become top dogs in the natural gas refueling infrastructure, with roughly 150 LNG stations across the country in 2010, and anticipates more than 300 by the end of 2011. By 2015, China NGV deployment is predicted to hit 1.3 million vehicles a year, vs. 502,801 deployed in 2010.
With only 8 companies in China which sell NG engine OEM products, Weichai JV has roughly 80% share in the heavy duty NGV market and 20%-25% in the overall NGV market. Jefferies comments that while the company's assembly facility was impressive, it has a limit of roughly ~20,000 engines a year. The firm believes that it will reach that by the end of 2013.
Ana analyst at Jefferies reports, "Although HPDI remains at par with diesel in performance, we believe rapid adoption will hinge on costs getting to 80,000-100,000 RMB at least as the delay getting HPDI into the market, coupled with a wide oil-natural gas spread, has given SI time to build customer acceptance. Such a trajectory would echo the price shift of Bosch's Euro III diesel engine, for example, that went from 100,000 RMB at launch to less than 10,000 RMB in a mature and competitive market."
Jefferies current FY11 EPS estimate is a loss of $0.80 while its FY12 estimate is a loss of $0.35.
For more ratings news on Westport Innovations click here and for the rating history of Westport Innovations click here.
Shares of Westport Innovations closed at $25.35 yesterday.
The firm comments that PetroChina and CNOOC have become top dogs in the natural gas refueling infrastructure, with roughly 150 LNG stations across the country in 2010, and anticipates more than 300 by the end of 2011. By 2015, China NGV deployment is predicted to hit 1.3 million vehicles a year, vs. 502,801 deployed in 2010.
With only 8 companies in China which sell NG engine OEM products, Weichai JV has roughly 80% share in the heavy duty NGV market and 20%-25% in the overall NGV market. Jefferies comments that while the company's assembly facility was impressive, it has a limit of roughly ~20,000 engines a year. The firm believes that it will reach that by the end of 2013.
Ana analyst at Jefferies reports, "Although HPDI remains at par with diesel in performance, we believe rapid adoption will hinge on costs getting to 80,000-100,000 RMB at least as the delay getting HPDI into the market, coupled with a wide oil-natural gas spread, has given SI time to build customer acceptance. Such a trajectory would echo the price shift of Bosch's Euro III diesel engine, for example, that went from 100,000 RMB at launch to less than 10,000 RMB in a mature and competitive market."
Jefferies current FY11 EPS estimate is a loss of $0.80 while its FY12 estimate is a loss of $0.35.
For more ratings news on Westport Innovations click here and for the rating history of Westport Innovations click here.
Shares of Westport Innovations closed at $25.35 yesterday.
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