H.C. Wainwright Believes Capstone Turbine Corp (NASDAQ: CPST) Still Has Room to Grow

By Carrie Williams

H.C. Wainwright analyst Amit Dayal maintained a Buy rating on Capstone Turbine Corp (NASDAQ: CPST) today and set a price target of $2. The company’s shares closed yesterday at $1.82, close to its 52-week high of $1.85.

Dayal observed:

“Creating Tools to Support Growth; Maintain Buy Distributor Support System (DSS) program launched. On April 12, 2018, CPST announced that it has launched, effective January 1, 2018, a new Distributor Support System program to provide improved distributor training worldwide and enhance sales efficiency. The DSS program is also designed to improve the company’s branding and to fund increased strategic marketing activities. According to the press release, CPST’s existing global distribution network is expected to fund the program based on a formula that incorporates each distribution partner’s prior calendar year’s CPST revenue. The program provides distributors with free access to: 1) regularly scheduled training courses; 2) all relevant distributor software licenses; and 3) development and hosting services for distributor websites.”

According to TipRanks.com, Dayal is a 3-star analyst with an average return of 3.0% and a 39.0% success rate. Dayal covers the Consumer Goods sector, focusing on stocks such as Superconductor Technologies Inc, Pacific Ethanol, and Plug Power.

Currently, the analyst consensus on Capstone Turbine Corp is Moderate Buy and the average price target is $2, representing a 9.9% upside.

In a report issued on April 10, Oppenheimer also assigned a Buy rating to the stock.

Based on Capstone Turbine Corp’s latest earnings report for the quarter ending December 31, the company posted quarterly revenue of $22.76 million and GAAP net loss of $323K. In comparison, last year the company earned revenue of $22.92 million and had a GAAP net loss of $4.63 million.

Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CPST in relation to earlier this year.

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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. Capstone Turbine was founded in 1988 and is headquartered in Chatsworth, CA.