Maxwell Technologies Initiated At Neutral By Roth

Although near-term growth at Maxwell Technologies Inc. MXWL has been impacted by soft demand at key Chinese bus customers, recent project wins have boosted the company’s credibility, and could result in a higher auto OEM hit rate, Roth Capital Partners’ Craig Irwin said in a report. The analyst initiated coverage of Maxwell with a Neutral rating and a $6 price target.

There has been a slowdown in Maxwell’s recent performance due to weak demand from Chinese bus customers. These customers have been impacted by unfavorable changes to subsidy programs. Analyst Craig Irwin mentioned, however, that positive demand trends were emerging at rail customers, and the generally healthy core markets support future growth.

Recent Wins Drive Prospects

Recent wins with Cadillac and Bentley have helped restore Maxwell’s credibility. This could translate into an improved auto OEM hit rate. “Our checks indicate the Bentley module was originally designed for the Audi Q7, where this could still end up being adopted,” Irwin wrote.

While expressing optimism regarding the long-term prospects of ultra-capacitors, the analyst commented, “We would look to turn constructive on growth visibility, and a clear path to profitability.”