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  5. HPS.A: Hi gang, again thanks for answering all Q's on Hammond, I like your SBC comparison to other big companies and your adjusted EBITDA response to mine. [Hammond Power Solutions Inc. Class A Subordinate Voting Shares]
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Q: Hi gang, again thanks for answering all Q's on Hammond, I like your SBC comparison to other big companies and your adjusted EBITDA response to mine.

So I promise this to be my last Q on the Hammond roller-coaster;)

Can you provide an update on growth drivers, YoY and forward looking for this co,pany. Is the underlying thesis still strong, with all the electrification needed in NA. And what support levels do you see? I'm looking to leg into a full position, but based on Apr - Jun levels of mid 90's it looks like we could have more floors down to go.

Thx
Asked by Christopher on November 01, 2024
5i Research Answer:

HPS.A is seeing strong demand for its transformers, which are essential in sectors like renewable energy, data centers, and EV. It has reported solid sales growth across its core markets year-over-year, with large increases in the US and Canada. Looking forward it is well-positioned to capitalize on North America's accelerating shift toward electrification and sustainable infrastructure. As governments and industries prioritize green energy projects, we think demand for HPS.A's products is likely to remain robust. Since the $94 level in June of this year, it has been on a nice steady uptrend, and we think if it can bounce between levels of $110 and its current price, that the upward trend could continue. Overall, we think entering in between here and $110 could be a good entry point, while also gauging to see if it finds a floor.