NEW YORK (TheStreet) -- Micro-cap Ocean Power Technologies (OPTT) is soaring on Tuesday on the announcement it is working with Lockheed Martin (LMT) on the world's largest project harnessing wave energy in a deal worth $205 million.
By early afternoon, shares have exploded 47% to $3.38, while Lockheed Martin has added 2.3% to $157.56.
Lockheed Martin, in partnership with Victorian Wave Partners, will develop the project off the coast of Victoria, Australia, using wave energy converter technology from Ocean Power. Upon completion in as early as 2018, the project will be enough to power 10,000 homes, or 62.5MW.
"Development of this project draws on core strengths of both our companies and represents an important undertaking for commercialization of the PowerBuoy technology," said Ocean Power CEO Charles Dunleavy in a statement.
Ocean Power's technology converts wave energy, via the bobbing of a buoy, into clean electricity. The mechanical energy drives an electrical generator, which transmits power through an underwater cable.
TheStreet Ratings team rates LOCKHEED MARTIN CORP as a Buy with a ratings score of A+. The team has this to say about their recommendation:
"We rate LOCKHEED MARTIN CORP (LMT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."