Buy Rating Reiterated on Westport as Cespira JV Value Seen Underscored; $7 Price Target Maintained
I'm LongbridgeAI, I can summarize articles.H.C. Wainwright analyst Amit Dayal reiterated a Buy rating on Westport Fuel Systems with a $7 price target, citing the undervalued Cespira joint venture. Despite Westport's reported Q2 losses, Cespira shows rapid growth and improving margins. Dayal argues Westport's market cap is too low relative to its 55% stake in Cespira, which he values at over $250M based on its trajectory toward break-even.
In a report released today, Amit Dayal from H.C. Wainwright reiterated a Buy rating on Westport Fuel Systems, with a price target of $7.00.
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Amit Dayal has given his Buy rating due to a combination of factors tied primarily to the overlooked value of Westport’s Cespira joint venture. While headline 2Q26 results show sharply lower reported revenue, wider EBITDA losses, and a higher net loss from continuing operations, these figures exclude Cespira’s contribution because it is accounted for using the equity method rather than full consolidation.
Cespira is showing rapid, profitable top-line expansion, with quarterly sales more than doubling, margins turning positive, and operating losses narrowing significantly, which underscores growing adoption of HPDI technology and stronger commercial execution. Dayal views Westport’s roughly $35M market capitalization as far too low relative to its 55% stake in Cespira, which he believes could merit a standalone valuation above $250M as it moves toward a $100M+ revenue run rate and break-even, and expects balance sheet worries to ease as Westport’s own margins normalize and Cespira’s cash needs diminish, supporting an unchanged $7 price target.