FBR Capital Maintains an 'Outperform' on Capstone Turbine (CPST); Impressive Orders and Backlog; Supply Chain Bottlenecks Likely Transitory
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Price: $28.04 --0%
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 5 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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FBR Capital maintains an 'Outperform' on Capstone Turbine (NASDAQ: CPST), PT $2.75.
FBR analyst says, "No doubt, this is a high-risk/reward story as Capstone continues to burn cash and could be several quarters away from breakeven, and there are challenges in competing with alternative and older established distributed power generation technologies, especially reciprocating engines. However, we see opportunity in shares of CPST as microturbines move up the technology maturity life-cycle curve, resulting in potential for strong 30%-plus 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 $1.42 yesterday.
FBR analyst says, "No doubt, this is a high-risk/reward story as Capstone continues to burn cash and could be several quarters away from breakeven, and there are challenges in competing with alternative and older established distributed power generation technologies, especially reciprocating engines. However, we see opportunity in shares of CPST as microturbines move up the technology maturity life-cycle curve, resulting in potential for strong 30%-plus 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 $1.42 yesterday.
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