Roth Capital Restarts Capstone Turbine (CPST) at Neutral; PT Moves to $1.60

Roth Capital is restarting coverage on Capstone Turbine (Nasdaq: CPST) with a Neutral rating, but moves its price target from $1.30 to $1.60 following a transfer of coverage.

Analyst Craig Irwin commented: The company reported F3Q16 results with light revenue and EPS inline. Healthy gross margins were a bright spot, lifted by rich accessories and parts margins. With actions largely done to bring the EBITDA to breakeven on $30m in revenue a quarter by FYE16, we now look for evidence of revenue acceleration before potentially becoming constructive on the stock.

Backlog is still falling, but appears nearly stabilized. Total backlog was $$102.3m, falling only ($2.5m) sequentially, and a return to backlog growth in upcoming quarters would confirm a turning point, in our view, Irwin noted.

For an analyst ratings summary and ratings history on Capstone Turbine click here. For more ratings news on Capstone Turbine click here.

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