Oppenheimer analyst Colin Rusch maintained a Buy rating on Capstone Turbine Corp (CPST) yesterday and set a price target of $3. The company’s shares closed yesterday at $0.91.
Rusch observed:
“CPST posted revenue below expectations primarily due to allocating production slots to rental units while at the same time beating bottom-line expectations via better than expected cost management. We are encouraged to see CPST containing opex as it works through reducing supply chain expense and optimizing manufacturing. With its new $30M credit facility, we believe CPST has some additional balance sheet support to give customers and suppliers confidence as it works toward sustainable profitability. While bookings were strong, revenue growth is clearly taking longer than we expected to materialize. We will be looking for additional progress on bookings and revenue growth throughout 4Q19 (Mar.).”
According to TipRanks.com, Rusch is a 5-star analyst with an average return of 9.9% and a 49.1% success rate. Rusch covers the Industrial Goods sector, focusing on stocks such as Amer Superconductor, Canadian Solar Inc, and Fuelcell Energy.
Currently, the analyst consensus on Capstone Turbine Corp is a Moderate Buy with an average price target of $2.50.
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Based on Capstone Turbine Corp’s latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $4.36 million. In comparison, last year the company had a GAAP net loss of $323K.
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Capstone Turbine Corp. develops, manufactures, markets and services micro turbine technology solutions for use in stationary distributed power generation applications, including cogeneration combined heat and power, integrated combined heat and power, and combined cooling, heat and power, renewable energy, natural resources and critical power supply.
