Westports Could Partially Pass Through Rising Fuel Costs — Market Talk

Westports Holdings could mitigate rising fuel costs amid Middle East-driven crude supply disruptions, with Maybank IB's channel checks indicating partial cost pass-through, analyst Loh Yan Jin says in a note. Fuel costs account for about 17% of Westports's 2025 operating expenses, she notes. The rollout of electric trucks from 2H should also help moderate fuel consumption, she says. Recent tariff hikes are expected to provide an additional earnings buffer, she adds. Loh cuts Westports's 2026 and 2027 earnings forecasts by 11% and 3%, respectively, to factor in higher fuel cost assumptions. Maybank cuts its target price to 6.48 ringgit from 6.74 ringgit given elevated risk premium amid geopolitical disruptions, while maintaining a buy rating on the stock. Shares are 0.5% lower at 5.62 ringgit. (yingxian.wong@wsj.com)