The Globe and Mail reports in its Wednesday, May 1, edition that since National Bank Financial analyst Rupert Merer started coverage of Hammond Power Solutions on April 9, its shares have dropped almost 14 per cent. The Globe's David Leeder writes in the Eye On Equities column that Mr. Merer, however, continues to see a "long runway for growth" and thinks Hammond Power should "be favoured as a good way for investors to play reshoring, electrification and accelerating data centre demand." Mr. Merer has upgraded Hammond Power to "outperform" from "sector perform." He has an unchanged share target of $164. Analysts on average target the shares at $140.50. Mr. Merer says in a note: "Growth should continue through 2024, but could slow as Hammond Power is somewhat capacity constrained until it completes expansion investments. ... With Q1 results, Hammond Power highlighted strong demand driving small incremental plans for further equipment spending and its first price increase since 2022. The price increase should take hold in Q2E and support margins. To keep up with market growth at over 10 per cent per annum beyond 2025, we believe that Hammond Power needs to invest about $40-million to $50-million per year."