Tuesday, March 27, 2012

Zoltek Soars After Q2 Results; D.A. Davidson Upgrades To Buy

Zoltek (ZOLT) shares are trading sharply higher following the announcement late yesterday of results for the fiscal second quarter ended March. While the Q2 results came in light, the Street apparently is focused instead on the company’s optimistic comments on the outlook for the rest of the year.

An analyst at D.A. Davidson reportedly upgraded the stock today to Buy from Neutral. (When I get a copy of the note, I’ll update this post with the details.)

I’d note that interest in Zoltek, which provides carbon fibers to the wind turbine business, seems to have spilled over into Broadwind (BWEN).

In today’s trading:

  • ZOLT is up $1.40, or 15.2%, to $10.59.
  • BWEN is up 30 cents, or 9.7%, to $3.41.

Update: In a research note, D.A. Davidson analyst Avinash Kant asserts that the wind business outlook is improving, spurring the upgrade. Kant set a $15 price target on the stock, up from $10. “We see strong long-term growth for Zoltek over the next five years,” the analyst writes, with compounded growth of close to 20%, “primarily from growth in the wind business.”

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