NEW YORK (TheStreet) -- Digital Power Corporation (DPW) soared more than 90% to a one-year high of $3.05 as of 11 a.m. on Wednesday after the company announced it had received a five-year contract from Israel Aerospace Industries.
Digital Power will provide its low-voltage power supply multiple outputs converter to IAI for the duration of the contract, which covers the manufacturing and delivery of the LVPS modules. IAI will use the LVPS to power the TAMAM Modular Azimuth Position System (TMAPS) navigation system, which the Israel Defense Forces (IDF) uses in tactical warfare.
The LVPS is designed to operate in battlefield scenarios in which jamming or other methods have disturbed GPS. It features a capability that should supply the TMAPS with continuous, stable power through multiple sources regardless of the operating conditions.
TheStreet Ratings team rates DIGITAL POWER CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate DIGITAL POWER CORP (DPW) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: