American Superconductor Shares Rise

NEW YORK (AP) — Shares of American Superconductor Corp., which makes equipment for power generators and utilities, rose on Wednesday as an analyst reiterated an "Outperform" rating for the company.

American Superconductor shares rose 58 cents to $31.67 in afternoon trading.

Raymond James analyst Pavel Molchanov said the company's stock is set to grow, citing the company's strong positioning in the wind arena, leverage to power grid investment and longer-term high temperature superconductor potential, as highlighted in its strategic alliance news.

Earlier on Wednesday, the company said it formed a strategic alliance with Korea's largest power cable manufacturer, LS Cable. The two companies plan to deploy at least 10 kilometers (6.2 miles) of superconductor power cables in commercial power grids over the next five years.

This builds on an existing relationship. In April, the company received a large order from LS Cable, covering 80 kilometers of second generation high temperature superconductor wire. Molchanov said this move was significant as it was the single largest commercial order for the technology in the world and because it represents the first installation in a commercial grid outside the U.S.

"While it is too early to quantify the near-term revenue potential of American Superconductor's expanded relationship with LS Cable, the alliance further opens the door to opportunities in the Korean power grid," Molchanov said.