- William Blair is sticking with an Outperform rating for Polypore (PPO -14.6%) even as the stock sells-off on weaker-than-expected Q3 numbers.
- "We believe ... that one or more of PPO's key customers in the electric vehicle market ... is putting pressure on [the company] to reduce the price of separator material, and that one or more customers is employing the tactic of slowing or halting purchases of separator material as a negotiating tactic," analyst Brian Drab says, interpreting management's comments regarding weakness in the EDV segment.
- Ultimately, Drab likes the company's competitive position and improving free cash flow, and expects an "eventual ramp in lithium separator sales."
William Blair still bullish on Polypore amid sell-off
Nov 5 2013, 13:41 ET