April 11 (Bloomberg) -- American Superconductor Corp., a maker of wind turbine and power-grid electronics, rose the most in more than two months after an analyst at Maxim Group LLC recommended buying the shares.
The stock rose 14 percent to $4.22 at the close in New York, the biggest increase since Jan. 18. Devens, Massachusetts-based American Superconductor has one buy, eight hold and three sell ratings from analysts. The shares have declined 68 percent in the past year.
Rising use of variable electricity sources such as wind and solar will boost demand for American Superconductor’s voltage regulators and a potential settlement over a dispute with a former customer, Chinese turbine maker Sinovel Wind Group Co., may provide a “surprising lifeline,” according to Aaron Chew, an analyst at Maxim in New York.
“With the intermittency of renewable energy causing sudden voltage changes, utilities are likely to increase spending on grid management,” Chew said in a note to clients after the close of trading yesterday. “With estimates reset and sentiment at a trough, positive surprise can drive up the stock materially.”
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