UPDATE: Maxim Group Initiates Buy, $7 PT on American Superconductor

Maxim Group initiates its coverage on American Superconductor AMSC with a Buy rating and a price target of $7 per share as the company works to recover from a major customer loss and higher spending on grid management. Maxim Group notes, "Having lost its No. 1 customer—Sinovel—AMSC's revenue base fell from over $300m to $75m, while negative gross margin has yielded estimated operating losses of ~($140m) in FY11. As a technological leader in solutions that boost performance and lower costs in wind power and grid management, AMSC is building a new business model around a broader revenue base." AMSC closed at $3.71 on Tuesday.