Citi Lowers Its PT on American Superconductor to $36 (AMSC)
Citi is out with its report on American Superconductor (NASDAQ: AMSC), lowering its PT from $37 to $36.
In a note to clients, Citi writes, "We rate AMSC Hold/ Speculative (2S) with a $36 target. Because AMSC has two distinct businesses at very different phases of maturity, we have chosen a sum-of-parts valuation that values the Superconductor business at around $7 per share and the Power Systems(wind) business at around $29 per share. We value the Superconductor segment using a price-to-sales multiple and estimate sales assuming a full transition from government and “demonstration” projects to full commercial sales. At 2012 sales of ~$81MM/year and applying a 4x multiple (based on historical range) on 48 million shares, this is about $7 per share."
At the time of posting, shares of AMSC were trading at $28.91, down 3.18% from Tuesday's close.
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