UPDATE: Piper Jaffray Initiates Coverage on Westport Innovations
According to a research report published earlier today, Piper Jaffray has initiated Westport Innovations (NASDAQ: WPRT) with an Overweight rating and $47.50 PT.
In the report, Piper Jaffray commented, “Our thesis is simple: if you believe (as we do) that 20% or more of all new trucks and buses worldwide will be burning LNG or CNG (instead of diesel) by 2017, then you should buy this stock. Our base case assumes 20% adoption by the end of 2017 in 3 major markets: North America, China, and Europe. This scenario equates to $3.28 in EPS by 2017. However, if CNG/LNG adoption reaches 40% of new truck sales by the end of 2017 - which is not outlandish in our opinion - that would equate to $6.11 in 2017 EPS. In either scenario, WPRT has a clear path to profitability, in our view, and shares are inexpensive.”
Westport Innovations is currently trading at $37.41.
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