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Hammond Power Solutions Inc. (HPS.A-T)
TSE:HPS.A
139.12
1.02
(0.73%) 1d
Financials
Technical Analysis
Buy, Sell or Hold?
This summary was created by AI, based on 4 opinions in the last 12 months.
Experts are generally positive about Hammond Power Solutions Inc. (HPS.A-T), emphasizing the company's role in providing equipment for the electrical business and its potential for capital gains. The increasing demand for power in big tech, data centers, and electric vehicles is also seen as a positive indicator for the company's future prospects. However, there is caution about the stock's recent surge and the need to assess its sustainability.
$136.500
Unknown
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)Shares have taken off due to the electrification of the grid, driven by EV demand. Kudos if you own this, but he doesn't buy smallcaps. Owners own a lot of shares. Needs to research this more.
Big tech and data centres need more power, because AI consumes a lot. Hammond plays into this.
Surprisingly, this is doing well, returning 10x your investment over 2 years. HPS has benefited from the boom in energy storage and data centres. Revenues and margins have shot up, so can they sustain this? He doesn't chase stocks that have shot up.
Canadian company that produces equipment for electrical business. Demand for EV cars, and electricity in general creating strong demand for products. Outlook for business very strong. Would expect large capital gains going forward.
Are positioned well. Sadly, he missed buying this much cheaper. This still has legs. Still fairly valued now.
Hold or maybe buy more. It is dominant in electrical transformers. Businesses overseas are starting to turn around. Their end markets are all doing very well right now. It should do well over the next few years. It checks a lot of the boxes for him.
Make smaller-scale electric transformers, with a pretty dominant market share, and could benefit from future increased number of electric vehicle stations. Really well run, clean balance sheet, 2.5% dividend. Sell to US customers in transportation, mining, power, oil & gas, infrastructure, where their end markets are strong and should be strong for several years. Low valuation, significant insider ownership. Good cash flow, could increase dividend and increase earnings significantly. A hidden gem in a niche sector. Canadian company that benefits from strong US economy. (Analyst’s price target is unknown .)
Hammond Power Solutions Inc.(HPS.A-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 4
Neutral - Hold Signals / Votes : 0
Bearish - Sell Signals / Votes : 1
Total Signals / Votes : 5
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, 5 stock analysts published opinions about HPS.A-T. 4 analysts recommended to BUY the stock. 1 analyst 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?
5 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 2024-10-21, Hammond Power Solutions Inc. (HPS.A-T) stock closed at a price of $139.12.
Our PAST TOP PICK with HPS.A has achieved its target at $146. To remain disciplined, we recommend covering half the position and trailing up the stop (from $95) to $105 at this time.