American Superconductor Up On Analyst Upgrade

PHILADELPHIA (AP) — American Superconductor Corp. shares rose Tuesday after an analyst upgraded the stock, citing the growth of the global wind power market.

Raymond James analyst Pavel Molchanov upgraded the stock to "Outperform" from "Market Perform." He also raised his price target by 50 cents to $33.50.

He noted that American Superconductor's largest customer, Sinovel, said at the end of July that it would be expanding and accelerating its turbine components contract.

The company, which makes equipment for power generators and utilities, then raised its fiscal 2009 revenue outlook to $260 million to $270 million from $225 million to $235 million.

Moreover, around 10 out of 14 other wind turbine partners are not yet in volume production. Once they ramp up, the analyst said, it would lead to future components contracts.

"The "wind" is clearly at its back," Molchanov said in a research note. "American Superconductor continues to benefit from growth in the global wind power industry, especially emerging markets."

He also said that China represents the biggest global wind market and 70 percent of American Superconductor's revenue comes from that country.

Shares of American Superconductor were up $1.28, or 4.3 percent, to $30.95 in morning trading.