NEW YORK (AP) -- Shares of Westport Innovations Inc., whose equipment enables cars to run on natural gas, rose Monday after it announced a long-term contract with Swedish car and truck maker Volvo.
The Vancouver, Canada, company will supply its technology to Volvo and work with it to find appropriate suppliers for Volvo's heavy duty natural gas engines.
Westport said the engines are expected to meet future European emission requirements.
Lazard Capital Markets analyst Graham Mattison said the agreement will "lead to Westport's technology being incorporated into the engines of another leading original engine manufacturer, providing further endorsement of its technology and the growing demand for natural gas engines and, more importantly, significantly increasing the company's addressable market opportunity."
Mattison, who has a "Buy" rating on Westport Innovations and a $15 price target, also said he expects the company will announce similar agreements with other major engine manufacturers.
Westport technology enables engines to run on compressed natural gas, liquefied natural gas, hydrogen and biofuels such as methane gas collected from landfills.
In afternoon trading, shares rose $1, or 9 percent, to $12.11. In the last 12 months the stock has ranged from $3.01 to $13.32.