OTTAWA (Reuters) - Shares of Catch the Wind Ltd CTWs.V took flight this week, gaining as much as 14 percent as an analyst recommended investors buy the stock because the wind turbine equipment maker is poised for lofty growth.

With a current market capitalization of about C$110 million ($102.8 million), tiny Catch the Wind is focused on a $1.4 billion wind turbine retrofit market, said Dundee Securities analyst Ian Tharp in a note out on Thursday.

The company has developed a fiber optic-based laser sensor that measures wind speed and direction at multiple points in front of a wind turbine’s blades. That data is then used to control turbine direction and positioning to capture more wind as it passes.

Spanish wind turbine manufacturer Gamesa GAM.MC said in September it will test the sensor at a U.S. commercial wind farm to determine if it wants to include the product on its turbines.

The sensor is also being tested by the U.S. National Renewable Energy Laboratory and Wind Energy Institute of Canada.

“This company should be on investors’ radar screen,” said Tharp, who rates the stock a speculative buy.

“The market size for accurate wind speed and direction measurement in the U.S. alone is anywhere in the range of $800 million to $1.9 billion annually.”

Trading at C$1.85 on the TSX Venture Exchange on Friday, the stock could reach C$7 by 2013, he estimated, based on a 5 percent to 10 percent share of the U.S. retrofit market alone.

Called the Vindicator, the sensor increases turbine efficiency, power production and lowers maintenance costs, but it also faces risks, Tharp wrote. While performance benefits are proven and turbine manufacturers wait for the product to mature, competitors are certain to emerge.

Current equipment captures data behind turbine blades, repositioning the turbine at 10 minute intervals, the analyst wrote. Readings are often inaccurate, resulting in less power production and more wear on turbine parts, he added.

Shares in the Manassas, Virginia-based company have gained about 85 percent year-to-date.

($1=$1.07 Canadian)