Why Maxwell Technologies (MXWL) Is Soaring on Wednesday

NEW YORK (TheStreet) -- Maxwell Technologies (MXWL) is soaring on Wednesday after Piper Jaffray reiterated the stock as "overweight" and nearly doubled its price target to $21 from $11.

By midafternoon, shares had added 19.1% to $14.56.

Piper Jaffray revisited the company's ratings valuation after receiving queries as to Maxwell's recent share price strength. Prior to Wednesday, shares had climbed nearly 40% within two weeks.

"Though we cannot trace the performance to any one catalyst, after hosting an NDR with MXWL last week we do believe the strength is justified," analyst Alexander Potter said in a note. "The interim CEO [John Warwick] spoke directly re: the potential for near-term design wins in the automotive market - which is at least a $1.5B annual opportunity for MXWL (and probably much more)."

Potter also said "Elon Musk's affinity for ultra-capacitors" could result in a partnership with Tesla (TSLA).

"As order momentum builds, we believe investors are likely to begin assigning a higher multiple to MXWL shares. There is historical precedent for this occurring: for all of 2011 and some of 2012, MXWL traded at or above 3x forward revenue. We think the stock is about to revisit this valuation," he said.

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TheStreet Ratings team rates MAXWELL TECHNOLOGIES INC as a Hold with a ratings score of C. The team has this to say about their recommendation:

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