10 Best Canadian Stocks To Buy According to Wall Street Analysts

06. Westport Fuel Systems Inc. (NASDAQ:WPRT)

Upside Potential: 138%

Average Analyst Share Price Target: $13.21

Westport Fuel Systems Inc. (NASDAQ:WPRT) presents an impressive upside potential of 138%, with analysts setting an average share price target of $13.21. The company is based in Vancouver, Canada and is a leading provider of alternative fuel systems for transportation. It engineers and manufactures innovative fuel systems that allow vehicles to run on alternative fuels like natural gas and liquid petroleum gas (LPG), helping reduce carbon emissions in the transportation sector. Westport Fuel Systems Inc. (NASDAQ:WPRT) operates through key segments, including Original Equipment Manufacturers (OEM), Independent Aftermarket (IAM), and Corporate, which enable the company to cater to both vehicle manufacturers and end consumers seeking greener fuel options. The company’s partnership with Volvo Group through a joint venture, focused on its High-Pressure Direct Injection (HPDI) 2.0 fuel system, is a major strategic highlight. This collaboration is aimed at commercializing HPDI technology for heavy-duty trucks and off-road vehicles, which represents a massive growth opportunity as the transportation industry pivots towards decarbonization. Volvo’s investment in this JV, amounting to $28 million with an additional earnout potential of up to $45 million, underscores the value and potential of Westport’s technology.

Westport Fuel Systems Inc. (NASDAQ:WPRT) financial performance in Q2 2024 reflects improved margins and operational efficiencies. Gross margins increased from 17% to 21% year-over-year, driven by cost-cutting initiatives and stronger sales in key areas like LPG fuel systems. Additionally, the company’s strategic restructuring into five business segments, including HPDI JV, Light-Duty, and High-Pressure Controls and Systems, provides greater transparency and aligns its operations with long-term growth objectives. With a pipeline of business opportunities, particularly in the hydrogen and clean energy markets, Westport Fuel Systems Inc. (NASDAQ:WPRT) is well-positioned for future growth. The company’s expertise in fuel containment and pressure management components for both hydrogen and natural gas makes it a key player in the clean energy revolution. As hydrogen-powered vehicles gain traction, Westport Fuel Systems Inc. (NASDAQ:WPRT) is poised to benefit from its early mover advantage and strong partnerships in the industry.