American Superconductor Shares Rise After Contract

SAN FRANCISCO (AP) — Shares of American Superconductor Corp. climbed Wednesday after the maker of equipment for power generators and utilities said it signed a $100 million electrical components contract with Sinovel Wind Corp.

Late Tuesday, American Superconductor announced its second contract with the Beijing-based wind turbine maker. The deal is for components that will be used in Sinovel's 3-megawatt wind turbines. American Superconductor plans to start shipping components in March 2010 and finish by the end of 2011.

American Superconductor shares rose $3.59, or 11.8 percent, to $33.95 in afternoon trading Wednesday. The stock has traded in a 52-week range of $8.22 to $37.58.

Kaufman Bros. analyst Theodore O'Neill upgraded the stock to "Buy" from "Hold" in a client note Wednesday, saying the announcement indicates the company's order backlog pipeline is being replenished. He said it also indicates that Sinovel isn't looking to work around the company's designs, and that demand and financing for wind turbines is still strong in China, American Superconductor's main geographic region.

O'Neill holds a $36 price target for American Superconductor shares.