Investment Review №327. The soft power of the Federal Reserve

Preformed Line Products Company (PLPC) specializes in engineering solutions for power and telecommunications infrastructure. The company produces equipment for power lines, distribution networks, and substations, as well as connecting and protective devices for fiber-optic networks. The company’s investment potential is influenced by structural factors. First, the modernization of power grids both in the U.S. and internationally supports robust demand for the company’s products. Secondly, the increasing electrification and power consumption by data centers and the AI industry reinforce the necessity for infrastructure expansion and upgrades. Thirdly, the development of broadband networks, along with the accelerated adoption of FTTx facilitated by government initiatives and telecom operators, is boosting the need for telecom solutions. These factors form a basis for long-term business growth. Freedom Broker has set a 12-month target price of $200 for PLPC stock.

Dorian LPG Ltd. (LPG) is an international operator in the marine LPG transportation segment, managing a fleet of 25 Very Large Gas Carriers (VLGCs) with a total capacity of around 2.1 million cubic meters. Its main trading routes stretch from the Persian Gulf to Asia, with over 90% of its revenues coming from the spot market through the Helios Pool joint venture. The company’s investment appeal is based on several factors. The growth in U.S. propane exports ensures long-term fleet utilization, while robust demand in Asia is supported by petrochemical development and the shift to more environmentally friendly fuels. Besides, the fleet expansion program, which includes the construction of a new LPG and ammonia carrier, serves as an additional catalyst for growth. Financially strong, the company increases its investment appeal by consistently returning capital to shareholders via dividends and buybacks. Freedom Broker’s 12-month target price for LPG stock is $48.

Karooooo Ltd. (KARO) is a global provider of SaaS telematics and car fleet management solutions, serving over 2.4 million subscribers across more than 20 countries. The company offers a platform for mobility analytics, video telematics, driver behavior monitoring, fuel management, and logistics. The investment appeal of the company is primarily driven by the extensive global telematics market, which is projected to grow from $96 billion in 2024 to $321 billion by 2032. This growth presents substantial opportunities for expansion. The second key driver is geographic diversification: though Karooooo generates significant revenue from South Africa, it is rapidly expanding into Asia and the Middle East, where annual growth rates exceed 20%. New products, Cartrack Tag and AI Video, are acting as an additional driver, enhancing average revenue per user (ARPU) and expanding cross-selling opportunities. Freedom Broker’s target price for KARO stock over a 12-month horizon is set at $68.

Dorman Products, Inc. (DORM) supplies automotive components for the U.S. aftermarket, offering approximately 138,000 parts for passenger cars, medium and heavy-duty trucks, and off-road power equipment like UTVs and ATVs. Approximately 92% of the company’s revenue is generated in the U.S. through distributors and retail partners. Dorman’s investment potential is supported by strong demand, fueled by an aging vehicle fleet averaging 12.6 years and the high cost of new vehicles. The second driver is the continuous renewal of its product line; in 2024, the company introduced 5,335 new parts, including 1,659 market firsts. Dorman’s stable financial performance is the third driver, with nearly 20 consecutive years of record sales, including a 7.6% year-over-year revenue increase to $541 million in Q2 2025. Freedom Broker’s 12-month target for DORM stock is $178.