Markets & Finance

Adams Harkness Cuts American Superconductor Rating

Adams Harkness downgraded American Superconductor (AMSC) to reduce from market perform.

Analyst Eric Poulty says he downgraded the company on concerns over the company's steadily decreasing cash balance, continuing operating losses, and recent share appreciation. He says the results were negatively impacted by delayed customer orders.

American Semiconductor, which makes products using superconductor wires and power electric converters for the electric power industry, sees approximately $9.4 million in fourth quarter revenue. While it is bidding on several research contracts that could reduce its cash burn, Poulty thinks the company's risk profile outweighs any potential price appreciation in the near-term.

He widened his $2.03 fiscal 2003 (March) loss estimate to a $2.13 loss, and sees a loss of $2.00 for fiscal 2004.

The Aging of Abercrombie & Fitch
blog comments powered by Disqus