Q: Any thoughts, why Hammond Power stock has been hammered over past 3 days, down 10%, with no apparent news except renewed fear of Trump's tariff plans.
How is this Company, likely to be impacted, if 25% tariffs becomes a reality ?
Thank You
How is this Company, likely to be impacted, if 25% tariffs becomes a reality ?
Thank You
5i Research Answer:
In general, the broader markets have been quite weak in recent days and weeks, and HPS.A, being a high growth name is likely to see more downside than the broader markets. Forward growth is expected to be strong, it trades at a decent valuation of 16X forward earnings, and analyst estimates have been rising. We continue to like the name here.
If we see tariffs, this would negatively impact its imports and operating costs. Although, given this, we expect many companies will begin to implement strategies to mitigate the impact of tariffs, such as diversifying suppliers, adjusting their operations, or implementing different pricing strategies.