City broker Cantor sees take-up of Windar Photonics PLC's (LON:WPHO) turbine technology grow strongly over the next few years and has started covering the share with a 'buy' stance and a 148p price target.
The firm makes laser guided units called LIDARs that sit atop wind turbines and line them up properly. Its technology also analyses the wind ahead of a turbine so it can be optimised to conditions.
Analyst Adam Forsyth says following a false start with a Chinese distributor, the firm is now back on track and notes the firm expects to be profitable in its current year (to December 2016).
Windar is already supplied to six of the top ten global utilities and four of the top ten global wind turbine manufacturers, he adds.
The technology can improve the value of a turbine by 4% to 7% and is beginning to gain significant traction with project developers and manufacturers, notes Forsyth.
"Windar’s unique technology allows it to provide better control 60% cheaper than the best competitor. We see it as a market leading and disruptive technology," he adds.
Cantor forecasts pretax profit of €0.1mln in 2016 rising to €12.5mln in 2017.
Shares closed yesterday unchanged at 72.50p.