Westport (WPRT) / Cummings (CMI) Engine will Drive EPS in 2015
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Price: $1.76 +2.33%
Rating Summary:
8 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
8 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Earlier this month, Cummins Westport, a joint venture between Cummins (NYSE: CMI) and Westport (Nasdaq: WPRT) announced it has begun development on the ISB6.7 G, a mid-range 6.7 liter natural gas engine designed to meet the increasing demand for on-highway vehicles powered by increasingly abundant natural gas.
"The 6.7L, which targets the Class C bus market, has an annual replacement market of 26,000 buses (vs. 480,000 total buses in North America), and, assuming consolidated CWI margins and a penetration rate similar to the refuse market as a benchmark, we estimate this new engine could add $0.04-0.45 to [WPRT] EPS in 2015," said Jefferies analyst Laurence Alexander.
Alexander also noted that the details of the 22 state natural gas vehicle RFP, led by Oklahoma, was announced earlier this month, and was seen as a positive for Westport.
"Though incrementally positive for sentiment on the Westport LD division, the impact during the program's infancy is probably limited," he said.
After noting these developments, among others, Jefferies reiterated a Buy rating on Westport Innovations (NASDAQ: WPRT) with a price target of $55.00.
For an analyst ratings summary and ratings history on Westport Innovations click here. For more ratings news on Westport Innovations click here.
Shares of Westport Innovations closed at $31.02 yesterday.
"The 6.7L, which targets the Class C bus market, has an annual replacement market of 26,000 buses (vs. 480,000 total buses in North America), and, assuming consolidated CWI margins and a penetration rate similar to the refuse market as a benchmark, we estimate this new engine could add $0.04-0.45 to [WPRT] EPS in 2015," said Jefferies analyst Laurence Alexander.
Alexander also noted that the details of the 22 state natural gas vehicle RFP, led by Oklahoma, was announced earlier this month, and was seen as a positive for Westport.
"Though incrementally positive for sentiment on the Westport LD division, the impact during the program's infancy is probably limited," he said.
After noting these developments, among others, Jefferies reiterated a Buy rating on Westport Innovations (NASDAQ: WPRT) with a price target of $55.00.
For an analyst ratings summary and ratings history on Westport Innovations click here. For more ratings news on Westport Innovations click here.
Shares of Westport Innovations closed at $31.02 yesterday.
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