RBC Capital Markets lowered its price target on Westport Fuel Systems Inc. (WPRT.TO, WPRT) to US$4 from US$8.

Analyst Christopher Dendrinos maintained a Sector Perform rating on shares of the Vancouver-based engine equipment manufacturing company.

He said the lower price target is based on WPRT's pro forma balance sheet post LDV sale.

"WPRT announced the divestment of its most mature biz line, the Light Duty segment for a total cash consideration of $73.1 Million which includes the reduction of debt of approximately $27 Million associated with the LDV biz," Dendrinos said in a note to clients.

"This decision positions WPRT 1) with a stronger BS, and 2) to begin a new phase of focus on new applications for HPDI and its earlier stage High-Pressure Controls & Systems business," the analyst said.

"We are not subscribing value to Cespira until we get greater visibility into earnings inflection."

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)