01:23 PM EST, 02/04/2025 (MT Newswires) -- National Bank has lowered its target on Hammond Power Solutions by $5, to $170, and updated its fourth-quarter estimates for the company, to account for a weaker CAD and lower commodity pricing.

Analyst Rupert Merer's revenue forecast is $204 million (was $203 million, cons $202 million.) The potential for 25% tariffs on imports to the U.S. on Canadian and Mexican products has weighed on Hammond stock, he notes.

Most competing transformers used in the U.S. are made in Mexico, and as a result, tariffs should drive prices higher but not without a transitory margin impact. HPS shares were also pressured by news on DeepSeek's new LLM model, but Merer sees no reason to change his thesis.

Target lowered to $170, from $175. Maintain Outperform.

"While we are lowering out target, the shares are down ~20% from the start of the year, and we believe the negative news is priced in."

Price: 102.81, Change: +2.49, Percent Change: +2.48