Robert Baird downgraded Capstone Turbine (CPST) to market perform from market outperform.
Analyst Scott Wilkin says the alternative energy company's preannouncement of lower-than-expected Q3 sales probably caught most investors off guard; in Q2 the company indicated visibility on Q3 vs. Q2 shipping units. He says California's lack of power problems are largely to blame, as Capstone California made for 30% of Q2 sales.
Wilkin says he's positive on long-term growth but says distribution agreements are developing slowly, and order trends will be lumpy at best. He put his downside risk to shares at around $5. He sees a $0.44 2001 loss, and a $0.36 2002 loss.