American Superconductor (AMSC) PT Lowered to $6 at Cowen

Cowen lowered its price target on American Superconductor (NASDAQ: AMSC) to $6.00 (from $7.50) while maintaining a Outperform rating following 1Q results. AMSC reported 1Q17 revenue of $8.9mn, slightly above the consensus estimates of $8.5mn. Gross margin of (50%) was far below both the 17.5% in the prior quarter and 6.5% in the prior year period. Adjusted EPS of ($0.64) was better than the consensus of ($1.02).

Analyst Jeffrey Osborne remains constructive on the stock, with potential upside due to Naval and grid infrastructure project opportunities in FY2017/18. American Superconductor's work with the Navy is progressing well, as the company delivered its first beta ship protection system. Given the Navy's existing fleet and planned fleet additions the company's TAM could exceed 100 ships for new and retrofit work.

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