Boston, MA 05/15/2014 (wallstreetpr) – The shares of Polypore International, Inc. (NYSE:PPO) climbed by over 4% after receiving William Blair’s analysts mandate and prediction that the company could probably team up with Tesla Motors Inc (TSLA).
Tesla’s Choice
The research firm’s analyst Brian Drab wrote in his report to the investors yesterday that Polypore is a strong contender to become a membrane supplier to Tesla. It is to be noted that the company is into membranes production that are used as separators in the lithium batteries, which are produced by Tesla. Drab, based on his discussion with several industry sourced, noted that Polypore’s positive reputation, its low cost separators and its monopoly in the U.S. markets as the only membrane supplier increases its chances to become Tesla favorite. Drab mentioned that though it is difficult to forecast the real numbers in terms of revenue that Polypore International, Inc. (NYSE:PPO) will gain if it partners with Tesla, but it is certain that Tesla will contribute half of its revenue by the year 2020. Following his view about the company, Drab raised the rating of the stock from Market Perform to ‘Outperform’.
Analysts’ Outlook
While Drab is not the only analyst to have an optimistic view about the membrane supplier, as on Friday, Topeka Capital Markets also hiked the price target of the stock from $43 to $45. On the same day, DA Davidson has also raised the price target from $36 to $42. The research firm’s price revision comes on the basis that the company is shielded against big falls and could benefit from the proliferation of the electric driven vehicles in the long term. DA Davidson has also raised the rating of the stock from ‘hold’ to ‘buy’ now. Similarly, Ascendiant Capital Markets analysts have also revised the rating of Polypore International, Inc. (NYSE:PPO) from hold to ‘buy’.
The positive outlook by multiple research firms have helped to drive the stock higher in the last few days.
