Roth Capital Remains Positive On Capstone Turbine Despite Weak FQ2 And Disappointing Outlook


In a research report released Friday, Roth Capital analyst Matt Koranda reiterated a Buy rating on Capstone Turbine (NASDAQ:CPST) with a $1.00 price target, which represents a potential upside of 19.0% from where the stock is currently trading.

Koranda commented: “CPST posted an FQ2 miss and tamped down FH2’15 expectations. We see near-term headwinds for the company given (1) a strong USD and (2) risks in the oil and gas vertical. We lower our FH2’15 estimates and our FY’16 estimates, for conservatism. We maintain our Buy rating, however, as backlog still appears healthy and we expect the company to reap greater benefits from its margin improvement initiatives with increased revenue.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Matt Koranda has a total average return of 3.3% and a 53.8% success rate. Koranda has a -20.0% average return when recommending CPST, and is ranked #1731 out of 3364 analysts.