UPDATE: Morgan Stanley Initiates Coverage on Westport Innovations with Equal-Weight Rating, $20 PT on Long-Term Bullish View

In a report published Tuesday, Morgan Stanley analyst Nicole DeBlase initiated coverage on

with an Equal-Weight rating and $20.00 price target. In the report, Morgan Stanley noted, “Long-term bullish view on natural gas transportation, but HPDI technology is unproven. A bullish view on WPRT stock requires substantial conviction in the long-term viability and market demand for WPRT's many natural gas ventures – many of which have yet to launch into the market. While we are longer-term bulls on the outlook for natural gas penetration in the NAFTA (and China) transportation markets, calling for 5-10% penetration by 2020e, it has yet to be proven whether HPDI technology will gain real traction vs. Spark-Ignited. Moreover, longer-term profitability potential remains unclear, as two of the company's segments will remain in negative territory until year-end (according to guidance).” Westport Innovations closed on Monday at $18.02.