Jefferies Reiterates Buy on Westport Innovations (WPRT), Sees Opportunity in China

Jefferies reiterated a Buy rating and a price target of $55.00 Westport Innovations (NASDAQ: WPRT), a provider of technology that enables engines to run on alternative fuels such as natural gas, liquefied petroleum gas, biogas or hydrogen, instead of diesel.

Analysts said China represents an underappreciated opportunity.

"Assuming the low end of the targeted ASPs and a 5% penetration rate of Weichai’s share, we estimate China alone could conservatively add $0.40 to EPS," said Laurence Alexander.

Westport expects to begin selling 12L HPDI systems into China in 2013, with ASPs of $20K- $40K in addition to the 35% equity income ($0.8-$1m quarterly run-rate) from current sales of Lean Burn (LBSI) engines.

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 $26.45 yesterday.

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