In a major boost to American Superconductor (AMSC), the company’s shares surged by 10% following the announcement of a new contract with Indian wind turbine manufacturer Inox Wind Limited. As a follow-on order, valued at $8 million, Inox Wind has shown great enthusiasm for American Superconductor’s wind turbine control systems by making the company its exclusive supplier. Moreover, Inox Wind requested immediate delivery of the control systems, ensuring that all revenues from this contract will be recorded within the current year.
Recognizing the significance of this contract, investment bank Craig-Hallum has raised its price target on American Superconductor stock by 17% to $14 per share. The bank anticipates positive news in American Superconductor’s Q3 earnings report, which is scheduled to be released early next month. The sustained growth in revenues, driven by contracts like the one with Inox Wind, is expected to contribute to the company’s continued trajectory of narrower losses and larger revenues.
Analysts, including those from S&P Global Market Intelligence, are also optimistic about American Superconductor’s Q3 performance, projecting a staggering 42% increase in revenues compared to the previous year, totaling $34 million. Despite the expected loss of approximately $0.14 per share, American Superconductor is making strides towards profitability, and this quarter’s result would be significantly better than the $0.34-per-share loss reported in the same period last year.
While it is premature to label American Superconductor stock as a buy, the company’s recent contract with Inox Wind and the positive projections for Q3 earnings indicate that business conditions are improving. As American Superconductor continues to capitalize on the growing demand for renewable energy solutions, investors and industry analysts are increasingly optimistic about the company’s future prospects.
The source of the article is from the blog queerfeed.com.br