Hammond Power Solutions Inc. (HPS.A-T)
TSE:HPS.A
101.49
2.50
(2.40%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
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This summary was created by AI, based on 14 opinions in the last 12 months.
Hammond Power Solutions Inc. (HPS.A) has been a focal point for analysts, blending a mixture of optimism and caution. The stock has experienced volatility, with a notable double-top and significant trendline break around ~$120, suggesting a cautious approach amidst current market conditions. Experts highlight the company's strong positioning in the electrification trend, despite concerns of potential capacity constraints and elevated valuations. There is a consensus that while the stock may appear expensive now, it could present an opportunity to accumulate for long-term investors who believe in its market potential. With growing revenues and a solid ROE, experts recommend managing risk by adjusting stop-loss levels, while some view the current price as overvalued due to limited growth prospects in the near term.
Still owned by founder, second generation. Has done the same thing for a long time; what changed is number of places they could sell to. Good business, but not a great price right now.
DeepSeek was like a "man overboard" moment for a stock like this, as many own it simply as a beneficiary of data centre buildout. This sentiment makes it harder for the long-term investor.
Our PAST TOP PICK with HPS.A has triggered its stop at $127. To remain disciplined, we recommend covering the position at this time. When combined with our previous guidance, this will result in a net investment gain of 21%
Exposed to the right verticals. One of the very few pure-plays in Canada. Management's been great. Stock has benefited from pickup in demand. But is it sustainable? Margins can't remain elevated forever. Power demand is real. Given the runup, be careful.
Hold, or reduce on strength. Better ways to get exposure.
Recently reported earnings for HPS.A showed record margins, increased revenues and a growing order backlog. Healthcare and data centre infrastructure projects are growing well for this manufacturer of electric transformers. We like that cash reserves are growing, while debt is retired. It supports a 27% ROE. We recommend trailing up the stop (from $115) to $127 at this time, looking to achieve $166 -- upside potential of 22%. Yield 0.7%
(Analysts’ price target is $165.67)Dry transformers. Spending fair bit of money to ramp up production and capabilities. Strong balance sheet. Data centres are going to use a lot of power, so the story will continue. Trades ~10x EBITDA, but growing at really high teens multiples for revenue and EBITDA. Yield is 0.8%.
(Analysts’ price target is $165.00)We reiterate this producer of electric transformers as a TOP PICK. Management announced an acceleration of capital deployment, supporting the trend for growing demand for its products. We like that cash reserves are growing, while debt is reduced. It trades at 20x earnings and supports a 28% ROE. We recommend trailing up the stop (from $75) to $95, looking to achieve $146 -- upside potential of 28%. Yield 0.6%
(Analysts’ price target is $165.00)Is exposed to all the right verticals. They make transformers to optimize energy, driven by the AI boom (the need for data centres). There's still upside despite the huge rally. Business is booming, and the growth trajectory is good. Trades at 18x PE, but growth makes the future PE reasonable.
HPS-A is the manufacturer of electric transformer systems used by electric utilities, the oil & gas sector and for EV charging stations. Recently reported earnings indicated record high quarterly sales and a 6% increase in earnings. We like that cash reserves are growing, while debt is retired. It trades at 22x earnings and supports a 25% ROE. We recommend setting a stop-loss at $75, looking to achieve $130 -- upside potential of 28%. Yield 1.0%
(Analysts’ price target is $162.00)
Hammond Power Solutions Inc.(HPS.A-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 6
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 8
Hammond Power Solutions Inc.(HPS.A-T) Frequently Asked Questions
What is Hammond Power Solutions Inc. stock symbol?
Hammond Power Solutions Inc. is a Canadian stock, trading under the symbol HPS.A-T on the Toronto Stock Exchange (HPS.A-CT). It is usually referred to as TSX:HPS.A or HPS.A-T
Is Hammond Power Solutions Inc. a buy or a sell?
In the last year, 8 stock analysts published opinions about HPS.A-T. 6 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hammond Power Solutions Inc..
Is Hammond Power Solutions Inc. a good investment or a top pick?
Hammond Power Solutions Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for Hammond Power Solutions Inc..
Why is Hammond Power Solutions Inc. stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Hammond Power Solutions Inc. worth watching?
8 stock analysts on Stockchase covered Hammond Power Solutions Inc. In the last year. It is a trending stock that is worth watching.
What is Hammond Power Solutions Inc. stock price?
On 2025-05-14, Hammond Power Solutions Inc. (HPS.A-T) stock closed at a price of $101.49.
HPS manufacturers electrical transformers such as those used in data centres with plants in Canada, the US, Mexico and India. Recently reported earnings showed record sales with 11% growth over the yar. It trades at 15x earnings, 3.5x book and supports a ROE of 26%. We recommend setting a stop-loss at $70, looking to achieve $119 -- upside potential of 28%. Yield 1.2%.
(Analysts’ price target is $160.50)