Actionable news
All posts from Actionable news
Actionable news in TPIC: TPI Composites Inc,

The Largest U.S. Wind Blade Company, TPI Composites, Initiated Bullish

The Largest U.S. Wind Blade Company, TPI Composites, Initiated Bullish - TPIC

Morgan Stanley’s Stephen C. Byrd believes TPI Composites Inc TPIC 3.98%'s “contracted cash flows, limited competition and ability to grow as wind demand and blade outsourcing grows provide a compelling way to play growth in the global wind market.”

Byrd initiated coverage of the company with an Overweight rating and price target of $21.

Well Positioned

The analyst mentioned that the growing trend toward greater blade outsourcing and the persisting wind power demand growth have positioned TPI Composites for robust revenue growth.

In addition, the company has only one outsourcing competitor that has the global capabilities and scale of TPI Composites, while there are meaningful barriers to entry.

Related Link: Hain Celestial Plummets 30%: Could You Have Seen It Coming?

Byrd also pointed out that the company offers attractive returns on invested capital, “driven by capital-light business model, significant benefits of scale and track record of efficient operations.”

Differentiated Company

Furthermore, its long-term supply agreement with several leading wind turbine OEMs that currently generate up to $3.1 billion in revenue and offer material incentives for customer maximize blade volumes.

Byrd believes what differentiates the company is its expertise “in advanced composite technology, manufacturing capabilities and track record, global presence, and its collaborative approach in which TPIC dedicates capacity to build its customers' unique blades.”

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

Aug 2016Canaccord GenuityInitiates Coverage onBuy
Aug 2016Cowen & CompanyInitiates Coverage onOutperform
Aug 2016Raymond JamesInitiates Coverage onOutperform

© 2016 Benzinga does not provide investment advice. All rights reserved.