Why Westport Fuel Systems (WPRT) could be the next natural gas giant

Westport Fuel Systems (WPRT)  is a provider of high-performance, low-emission engine and fuel system technologies utilizing gaseous fuels. The company brands include Cummins Westport, BRC Gas Equipment, Westport, OMVL, Prins, GFi Control Systems, Emer, Zavoli, TA Gas Technology, AFS, and Valtek.

As I’m sure a lot of you have recently heard about Renewable Natural gas (RNG) thanks to the recent surge from Clean Energy (CLNE), Westport Fuel Systems create parts that are vital to these heavy duty trucks running on natural gas, most importantly the HPDI-2.

There are currently 30,000 trucks on the road using Westport Fuel Systems across the world, and this number is bound to rise as they are in 70 countries including Europe, Northern America, and Asia just to name a few, as we know there are many countries that are a part of the Paris Climate Accord. With RNG being the only true answer to emissions reductions in the transportation sector like trucking, buses, refuse, and cement trucks.

We can only imagine how many more vehicles are going to convert to natural gas over the next 10 years.

Some of you may say what about hydrogen, I’m sure most of you know hydrogen power isn’t quite there yet, but Westport is setting themselves up for a simple conversion by absorbing companies that would be competitors in the sector or simply already have the technology that Westport needs. The best part of it all is the HPDI 2 system can also run with Hydrogen with no modifications.

Your eyes should be on Westport Fuel Systems (WPRT)

This company is covered by 6 analysts with 4 out of the 6 rating it a buy with an average price of $13.13 a share. This company not to long was trading at $50 a share and is now on a steep discount at $5.05 a share which is under the 200 day MA. Westport is currently in a joint venture with Cummins diesel and has been in this venture since 2001. Westport is working on a deal with Weichai that would dramatically increase the demand for their product as they want 25,000 vehicles minimum by 2024. Westport currently holds 1400 patents so their product can not be easily duplicated. Westport is a profitable company and has been profitable for the last few years.