Global Hunter Upgrades Power Solutions to Accumulate

Citing the company's first highway orders (sets precedent that could expand market size), Global Hunter analyst Walt Liptak published a report Friday morning upgrading Power Solutions International

from Neutral to Accumulate, with a price target of $70. The reaction to the company's Q2 results were generally positive, Liptak said. The Company beat revenue estimates of $82.8MM for the second quarter with $83.4MM. EPS estimates were also beaten at $0.31 vs. estimates of $0.26. In the report, Liptak noted “The beat was driven by an increase in higher-margin oil & gas applications. Gross margin was 18.5% vs. our estimate of 16.9%. Management expects gross margin headwinds from the NACCO ramp to be offset by oil & gas sales throughout the rest of the year. We are raising our 2014 estimates by $5MM in revenue and $0.06 EPS”. Shares of Power Solutions are up more than 13 percent Friday morning following the quarterly results on Thursday afternoon.