Westport Fuel Systems: HC Wainwright Raises PT to $7, Reiterates Buy Rating

Westport Fuel Systems: HC Wainwright Raises PT to $7, Reiterates Buy Rating

Westport Fuel Systems Inc. (WPRT) received a positive update from HC Wainwright, which raised its price target to $7 and reiterated its buy rating. This move comes amidst mixed financial results for the company in its second quarter of 2025. According to HC Wainwright, the company's strategic shift towards high-pressure hydrogen technology (HPDI) and its focus on commercial transportation solutions present strong long-term growth prospects.

In its Q2 2025 earnings report, Westport Fuel Systems reported a decrease in revenue from $14.1 million to $12.5 million, a 11% year-over-year decline [2]. Despite this, the company achieved significant improvements in operational efficiency, with operating expenses reduced by $6.1 million to $15.5 million. Adjusted EBITDA also improved from negative $2 million to negative $1 million [2]. The company's stock experienced a notable decline, dropping 9.92% during regular trading hours and an additional 13.94% in pre-market trading [2].

Westport Fuel Systems is focusing on expanding its HPDI technology and strengthening its position in the commercial transportation sector. The company plans to open a hydrogen innovation center in China and relocate its European manufacturing operations to Canada. These strategic moves aim to capitalize on the growing demand for alternative fuel solutions, particularly in North America and Europe.

CEO Dan Zehle emphasized the company's commitment to creating value for shareholders, stating, "HPDI is fuel agnostic, and the on-engine system can run on any one of the fuels, hydrogen, all the natural gases." He also highlighted the strategic benefits of divesting the light duty segment, allowing Westport to focus on solutions for hard to decarbonize mobility and industrial applications [2].

However, the company continues to face challenges in achieving revenue growth and market confidence. Continued revenue decline poses a challenge for financial stability, and market volatility and investor sentiment could impact stock performance. Global hydrogen market dynamics present uncertainty, except in China. The need for ongoing investment in technology and infrastructure, as well as potential regulatory changes affecting alternative fuel adoption, are additional risks to consider [2].

References:
[1] https://finance.yahoo.com/news/westport-fuel-systems-inc-wprt-070934048.html
[2] https://ng.investing.com/news/transcripts/earnings-call-transcript-westport-fuel-systems-sees-stock-drop-after-q2-2025-93CH-2058164