UPDATE: Wunderlich Downgrades American Superconductor to Hold
Wunderlich is out with its report today on American Superconductor (NASDAQ: AMSC), downgrading AMSC from Buy to Hold.
In its report, Wunderlich writes, "American Superconductor announced last night that a rogue former employee had stolen secret code from the company and sold it to its largest competitor. The employee is in jail and AMSC is suing Sinovel, once its largest customer. The company held an analyst conference call to discuss this issue and provided some information about the market but nothing specific about the financial implications except to say that Sinovel is no longer a customer. The loss of Sinovel lowers the revenue and earnings forecast for AMSC, and in turn our DCF. The result is that our price target drops to $6 from $12 and leads us to cut our rating on AMSC shares to Hold from Buy."
Shares of AMSC closed Thursday at $6.01, down 15.11% from Wednesday's close.
