WPRT stock traded up slightly on February 7, 2022, after Craig-Hallum said the stock is too cheap.
Westport looking ‘far too cheap,’ says Craig-Hallum
Craig-Hallum analyst Eric Stine notes that it “was an eventful morning” for Westport Fuel Systems (WPRT) with the announcement it has monetized its share of the jointly owned Cummins-Westport spark-ignited IP for $20M along with an agreement with Cummins (CMI) for the initial assessment of Westport’s high-pressure direct injection technology using hydrogen. The analyst sees the addition of $20M to an already strong balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity. as a positive resolution to the end of the CWI JV. In his view, the primary aspect of the announcement is the hydrogen HPDI assessment which is another great example of the high-value and strategic importance of Westport’s proprietary HPDI technology in the market as the transportation sector decarbonizes. Add Cummins to the hydrogen HPDI roster while adding $20M to the balance sheet – two more reasons why Westport is “far too cheap at 0.5-times salesThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th...,” Stine argues. The analyst has a Buy rating and a price target of $12 on Westport’s shares.
Cummins to Purchase Remaining Shares in the former Cummins Westport Joint Venture from Westport Fuel Systems
On February 7, 2022, Cummins Inc. (NYSE: CMI) and Westport Fuel Systems Inc. (TSX:WPRT | Nasdaq:WPRT) have agreed to a share purchase agreement for the sale of Westport’s stake in the Cummins Westport Joint Venture (“JV”) with CMI continuing to operate the business as the sole owner. As previously reported, the Cummins Westport Inc. joint venture agreement terminated effective December 31, 2021.
As part of the agreement, Cummins also will buy Westport’s interest in the JV’s intellectual property, developed by the JV in support of the JV’s spark ignited engines, with proceeds to Westport of US$20,000,000.
Cummins and Westport have also agreed to conduct an initial technical assessment of Westport’s hydrogen high pressure direct injection system (“H2 HPDI™”) for potential use on CMI’s hydrogen applications.
Westport Fuel Systems Joins World Hydrogen Council
On January 27, 2022, Westport Fuel Systems Inc. (TSX:WPRT / Nasdaq:WPRT) announced that it has joined the internationally-recognized Hydrogen Council (www.hydrogencouncil.com) as a supporting member. The Hydrogen Council is a global CEO-level advisory body providing a long-term vision for the important role of hydrogen technologies in an energy transition for cleaner transportation solutions.
The Hydrogen Council aims to:
- Increase visibility around the hydrogen solutions currently available and the progress that has been made in this regard.
- Advocate for the important role of hydrogen technologies in helping to meet climate goals, energy security and competitive targets, as well as work toward better deployment conditions.
- Work with and provide recommendations to several key stakeholders, such as policymakers, the business community, international agencies and civil society, to achieve its goals.
- The Hydrogen Council includes CEOs from such member companies as Airbus, Bosch, BMW GROUP, Daimler, ENGIE, Honda, Hyundai, Iveco Group, Kawasaki, Mitsubishi, Shell, The Linde Group, Toyota and Weichai.
“We are thrilled to join the Hydrogen Council as a supporting member,” said David M. Johnson, Chief Executive Officer of Westport Fuel Systems. “The Hydrogen Council continues to boost global collaboration and work within the industry to scale up hydrogen solutions for cleaner transportation. We believe that green hydrogen in internal combustion engines and fuel cell vehicles will be key in decarbonizing transport. As a global leader in gaseous fuel solutions, we look forward to working with the Hydrogen Council to advance hydrogen’s role in the clean energy transition.”
📺 Westport Fuel Systems (WPRT) – Presentation, Deep Dive and Q&A with CEO David Johnson[embedyt] https://www.youtube.com/watch?v=1D-hdOxcWDs[/embedyt]
📉 WPRT Stock Technical Analysis
The short term trend is negative, as is the long term trend. WPRT is part of the Machinery industry. There are 150 other stocks in this industry, of which 82% are performing better than WPRT. WPRT is currently trading near the lower end of its 52 week range, which is not a good sign. The S&P500 Index is trading in the upper part of its 52 week range, so WPRT is lagging the market.
There is support at 1.92 from a trend line in the daily time frame. There is also support at 1.77 from a horizontal line in the weekly time frame.
There is resistance at 2.03 from a horizontal line in the daily time frame. There is also resistance at 2.40 from a trend line in the daily time frame. There is also resistance at 2.45 from a horizontal line in the daily time frame.
The technical rating of WPRT is bad and it also does not present a quality setup at the moment. WPRT stock has a Setup Rating of 3 out of 10. Price movement has been a little bit too volatile to find a nice entry and exit point. It is probably a good idea to wait for a consolidation first. Click here to sign up for email alerts on when WPRT stock has a Setup Rating of 8 or higher.