National Bank of Canada Raises Hammond Power Solutions' Price Target to C$355 from C$325
National Bank of Canada on Tuesday reiterated its outperform rating on the shares of Hammond Power Solutions (HPS-A.TO) while raising its price target to C$355 from C$325.The higher price target reflects the company's stronger long-term pricing and cash flow expectations, the bank said.Hammond's Monterrey 4 and reconfiguration across Monterrey 3/4 should bridge near-term demand and support $1.2 billion of revenue capacity in 2026, with existing real estate potentially adding another $50 million-$100 million, the bank said.Data centers have moved from 10% of revenue three years ago to 30% exiting 2025, with a higher share of backlog at over 30-40%, according to National Bank.US Section 232 tariffs create margin timing pressure, particularly on standard product, but HPS has moved on price and larger custom contracts often include tariff protection, the bank said.Price: $297.29, Change: $-2.32, Percent Change: -0.77%
