Update shared on 22 Nov 2025
Analysts have revised American Superconductor's average price target downward from $63.00 to $55.00. They cite slightly lower revenue growth forecasts and modest order growth, though they continue to highlight emerging margin expansion drivers that support a more favorable outlook.
Analyst Commentary
Recent research notes provide insight into the evolving viewpoints of analysts regarding American Superconductor's fundamentals, execution, and valuation outlook.
Bullish Takeaways- Bullish analysts highlight that recent share price weakness has created a more attractive entry point, increasing the investment appeal in the current environment.
- There is optimism regarding clearer medium-term drivers for EBITDA margin expansion, including improved operating leverage, even as topline expectations are moderated.
- Strong performance on recent quarterly EPS, with margins expected to benefit from better control over selling, general, and administrative expenses, supports upward revisions to near-term earnings estimates.
- Order backlog growth, particularly in semiconductors and new data center projects, is expected to help drive incremental revenue in upcoming quarters and enhance visibility into future growth potential.
- Bearish analysts note that revenue growth forecasts have been trimmed due to lower expectations for grid-related demand and the uncertain timing of wind-related sales. This has led to more cautious topline projections over the next several years.
- The outlook for the upcoming quarter remains modest, with guidance for revenue and EPS generally in line with or slightly below consensus, reflecting tempered expectations for short-term growth acceleration.
- Recent share rallies, combined with mixed quarterly results, could limit near-term upside as investors reassess valuations following muted sales performance.
- Longer-term EPS forecasts have been reduced to incorporate lower order growth assumptions, suggesting a more measured approach to future profit expansion.
What's in the News
- American Superconductor issued earnings guidance for Q3 ending December 31, 2025, forecasting revenue between $65 million and $70 million (Key Developments).
- The company expects net income to exceed $2 million, or $0.05 per share, for the quarter (Key Developments).
Valuation Changes
- Fair Value Estimate remains unchanged at $63.00.
- Discount Rate has declined slightly from 9.15% to 8.99%.
- Revenue Growth Forecast has edged down from 12.53% to 12.36%.
- Net Profit Margin Outlook has improved from 12.69% to 13.85%.
- Future P/E Ratio has decreased from 93.6x to 85.7x.
Disclaimer
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