Bell Potter have as a Strong buy as at 4/5/18 with a Target price of $3.00. An excerpt from their report is
"Diversifying outside of motorsports: PWR is diversifying its revenue base and increasing its exposure to areas outside of motorsports. For example, emerging technologies represented c.5% of FY17 revenue and is now the third largest area of revenue after motorsports and the automotive aftermarket. OEM is another focus area of the company and also represented c.5% of FY17 revenue compared to 3% in FY16. "
I have a huge amount of respect for the Weel family. They built this business from nothing, and gave up the supercar team to focus on the business. Good succession planning with Paul (Kees son) heavily involved. The family owns 38% through their company KPW property, so have skin in the game. Any major reduction in their holding would be a concern. 2nd half revenue is always better which may explain SP move.
I got in at IPO and is a long term hold for me, and topping up on the dips. I doubt it will ever soar but is a solid performer in a niche market.
PWH Price at posting:
$2.60 Sentiment: Hold Disclosure: Held
