FBR Capital Starts Capstone Turbine (CPST) at Outperform; Clean-Tech Industrial at Cusp of Transitioning to Profitable Growth

FBR Capital initiates coverage on Capstone Turbine (NASDAQ: CPST) with a Outperform. PT $2.75.

FBR analyst says, "We see opportunity in shares of CPST as microturbines move up the technology maturity life-cycle curve, resulting in potential for strong 30%+ volume growth. Combined with cost reduction and higher ASPs, this should result in improving gross margin and positive EPS over the next six to eight quarters. We also recognize that Capstone’s revenue and earnings potential could perhaps be significantly enhanced by an acquirer with a larger global brand presence, supply chain, and stronger balance sheet, and we would not be surprised to see acquisition interest over the next several quarters."

For more ratings news on Capstone Turbine click here and for the rating history of Capstone Turbine click here.

Shares of Capstone Turbine closed at $1.60 yesterday.

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