Jefferies has upgraded Westport (NASDAQ: WPRT ) to a buy, with a $38 price target. In this video, Motley Fool industrials analyst Blake Bos discusses why investors should always treat share-price pops that accompany analyst upgrades as opinion, not fact, and that your personal opinion on the stock -- gleaned from your own research -- should be a factor as well.
Blake also discusses why Jefferies is predicting that Westport will strongly benefit from an acceleration of natural gas vehicles in the U.S. and China and why this highly speculative stock still has several challenges ahead.
As the most advanced designer of engines powered by natural gas, Westport Innovations is a small company with a big goal: to lead the world in transitioning away from traditional oil-based fossil fuels in favor of abundant, cheap, and clean natural gas. The company has a price tag large enough to match its ambition, and will need to grow revenue quickly in order to justify sky-high expectations. To help you determine whether Westport Innovations is right for your portfolio, The Motley Fool has just released a brand-new premium report breaking down the company's opportunities, competitive advantages, and risks. To get started, simply click here now for instant access.