RW Baird Cuts Capstone Turbine to 'Market Perform'

Analyst Scott Wilkin says the alternative power company warned of sluggish orders, amid softening prices for traditional energy sources

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.

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