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Friday, Mar 29, 2024

Capstone Rallies 44 Percent on Upgrade

An upgrade from Oppenheimer has pushed the stock of Capstone Turbine Corp. to its highest price in nearly a year. The Chatsworth manufacturer of small turbines has gained 44 percent in the last two days to close Thursday at $1.01. Prior to Thursday, the last time Capstone closed above the $1 threshold was Oct. 26, 2016. Analysts at Oppenheimer gave Capstone a $2 price target and predicted the company could reach breakeven on an EBITDA basis by 2019. EBITDA stands for earnings before interest, taxes, depreciation and amortization. The analysts said Capstone has weathered a difficult period, but the company has managed its cash well and is now in position for revenue and margin gains.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

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