Q: Its been having a nice and steady move to the right. At what price does the valuation look fair? Also with all the talk of EV sales slowdown will this have an impact on the demand for their products? Not sure what % of their rev / sales is tied to the EV market.
5i Research Answer:
We like HPSA and think that current valuation levels at 19.9x forward earnings is a decent entry point. HPSA does not segment out its EV sales so unfortunately we cannot speak to the percentage of revenues it makes up. HPSA's products more focuses on supporting EV charging than EV manufacturing itself. We think that EV charging infrastructure has had a bit of a lag compared to the actual EV's themselves in terms of production. HPSA should benefit as governments and private companies try to scale up the number of charging stations available which makes us less concerned with the decreased demand for EV's themselves to begin this year.