Zacks Investment Research Upgrades Westport Fuel Systems (NASDAQ:WPRT) to “Hold”

Westport Fuel Systems (NASDAQ:WPRT) (TSE:WPRT) was upgraded by Zacks Investment Research from a “strong sell” rating to a “hold” rating in a research note issued on Thursday, Zacks.com reports. The brokerage currently has a $2.25 target price on the auto parts company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 5.63% from the company’s previous close.

According to Zacks, “Westport’s portfolio of eco-friendly product mix is set to boost prospects. Westport HPDI 2.0 offers an environment-friendly robust performance for heavy-duty trucks, thereby positioning the company favorably as the transition to green transportation solutions intensifies. The acquisition of Stako has enhanced Westport’s ability to supply completely integrated fuel systems and its vision to transition to cleaner fuels. Low leverage is another positive. However, soaring commodity costs, tough labor market, logistical challenges and high R&D expenses are denting Westport’s margins. The natural gas fuel tech company is reeling under negative cash flows and operating losses, and the trend is likely to continue. Moreover, termination of joint venture with Cummins has been a spoiler. Thus, the stock warrants a cautious stance.”

Shares of WPRT stock opened at $2.13 on Thursday. The firm has a fifty day moving average of $2.49 and a 200-day moving average of $3.41. The company has a quick ratio of 1.66, a current ratio of 2.19 and a debt-to-equity ratio of 0.14. Westport Fuel Systems has a 12-month low of $2.03 and a 12-month high of $12.95. The company has a market capitalization of $359.70 million, a price-to-earnings ratio of 23.34 and a beta of 2.26.

Westport Fuel Systems (NASDAQ:WPRT) (TSE:WPRT) last issued its quarterly earnings data on Monday, November 8th. The auto parts company reported ($0.03) earnings per share (EPS) for the quarter. Westport Fuel Systems had a return on equity of 3.74% and a net margin of 3.89%. The company had revenue of $74.30 million for the quarter, compared to the consensus estimate of $85.56 million. During the same period in the prior year, the company earned $0.01 EPS. The firm’s revenue was up 13.6% on a year-over-year basis. On average, equities analysts expect that Westport Fuel Systems will post 0.01 EPS for the current year.

A number of institutional investors and hedge funds have recently made changes to their positions in WPRT. Millennium Management LLC boosted its holdings in Westport Fuel Systems by 253.7% during the second quarter. Millennium Management LLC now owns 2,781,048 shares of the auto parts company’s stock worth $14,767,000 after purchasing an additional 1,994,834 shares during the last quarter. Two Sigma Advisers LP boosted its holdings in Westport Fuel Systems by 339.7% during the third quarter. Two Sigma Advisers LP now owns 2,181,063 shares of the auto parts company’s stock worth $7,176,000 after purchasing an additional 1,685,000 shares during the last quarter. DekaBank Deutsche Girozentrale boosted its holdings in Westport Fuel Systems by 69.2% during the third quarter. DekaBank Deutsche Girozentrale now owns 3,148,000 shares of the auto parts company’s stock worth $10,040,000 after purchasing an additional 1,288,000 shares during the last quarter. AWM Investment Company Inc. boosted its holdings in Westport Fuel Systems by 24.3% during the second quarter. AWM Investment Company Inc. now owns 3,832,047 shares of the auto parts company’s stock worth $20,348,000 after purchasing an additional 750,000 shares during the last quarter. Finally, Lord Abbett & CO. LLC boosted its holdings in Westport Fuel Systems by 9.1% during the second quarter. Lord Abbett & CO. LLC now owns 7,163,519 shares of the auto parts company’s stock worth $38,038,000 after purchasing an additional 597,118 shares during the last quarter. Institutional investors and hedge funds own 26.74% of the company’s stock.

Westport Fuel Systems Company Profile

Westport Fuel Systems, Inc is a transportation technology company. It engages in the engineering, manufacture, and supply of alternative fuel systems and components. The firm operates through the following segments: Transportation, The Cummins Westport, Inc (CWI) Joint Venture, and Corporate. The Transportation segment designs, manufactures, and sells alternative fuel systems and components for transportation applications.

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