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Investing.com - Oppenheimer raised its price target on American Superconductor (NASDAQ:AMSC) to $64.00 from $45.00 on Thursday, while maintaining an Outperform rating on the stock. The company’s stock has shown remarkable momentum, with an 82% return over the past year and is currently trading near its 52-week high. According to InvestingPro analysis, the stock appears to be trading at premium valuations across multiple metrics.
The price target increase follows American Superconductor’s strong beat-and-raise results for the first quarter of fiscal year 2025, which demonstrated the company’s operating leverage potential. The company’s financial health appears robust, with InvestingPro data showing more cash than debt on its balance sheet and liquid assets exceeding short-term obligations.
Oppenheimer noted that American Superconductor achieved its June quarter 2025 results while operating just a single manufacturing shift, and that optimization of the product portfolio is outperforming expectations in the field.
The research firm adjusted its revenue, gross margin, and operating expense estimates higher for American Superconductor, citing these positive developments that are positioned to drive improved pricing and margins.
Oppenheimer also highlighted strong underlying fundamentals for power quality solutions driven by regionalization and aging infrastructure, with potential for accelerating military sales, as factors supporting the increased price target.
In other recent news, American Superconductor Corporation reported its first-quarter earnings, which significantly exceeded analyst expectations. The company posted an adjusted earnings per share of $0.29, surpassing the anticipated $0.12 by 142%. Despite this strong earnings performance, American Superconductor’s revenue came in at $60.1 million, which was below the consensus estimate of $64.97 million. However, this still represented a 49% increase compared to the same period last year, when revenue was $40.3 million. These results highlight the company’s profitability despite a revenue shortfall. The earnings report has attracted attention from investors and analysts alike. Analyst firms have noted the earnings performance in their recent evaluations. These recent developments suggest a focus on the company’s ability to maintain profitability amidst fluctuating revenue figures.
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