William Blair still bullish on Polypore amid sell-off

|About: Polypore International, Inc. (PPO)|By:, SA News Editor

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."