In a research report issued yesterday, Canaccord analyst John Quealy maintained a Hold rating on shares of Westport Innovations Inc. (USA) (NASDAQ:WPRT) with a $6.00 price target, after the gas engine company released its second-quarter results, posting revenues/GAAP EPS of $27.85M/$(0.32) compared to Quealy estimates of $25.7M/ $(0.41) and the Street at $28.1M/$(0.29).
Quealy wrote, “Impressively, streamlining of the platform continues to be aggressive (including noncore asset sales, ~$50M of potential value moving towards expected completion in the Q4 timeframe), as the company positions itself for better leverage with improving end-market fundamentals (goal of consolidated positive adjusted EBITDA in mid-’16 stays on track). Here, we note that combined operating expenses for the company have declined by ~$22M vs. H1/14 (along with much better cash burn).”
The analyst concluded, “Macro oil price challenges keep share volatility high (exacerbated by challenges in Europe/China), while the company works to introduce engine platforms, book orders and perhaps most of all – conserve cash – in 2015. A recent shelf filing likely foreshadows additional fundraising activity. We continue to see inherent value in the underlying technology platform.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst John Quealy has a total average return of 8.0% and a 36.4% success rate. Quealy is ranked #750 out of 3718 analysts.
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