Stratasys Shares Lower Amid Craig-Hallum Downgrade, Several Price Target Reductions
Stratasys Limited (NASDAQ: SSYS) shares are trading lower Monday afternoon as a number of analysts released cautious notes on the company. In addition to a downgrade from Craig-Hallum earlier, UBS, Pacific Crest, and Jefferies all had fresh notes out this morning.
- Craig-Hallum - downgraded from Buy to Hold, price target reduced from $135 to $90.
- UBS - maintains Buy rating, lowered target from $130 to $120. The firm said the revised target was related to “…revised EV/Sales target multiple of 6.0x on our 2015 sales estimate of $954 million.” The analysts expects operating leverage to improve from its current point and sees FY 2014 expectations returning to 2013 levels.
- Pacific Crest - maintains Sector Perform. The firm remains cautious about sentiment around the stock though they do see reasonable potential for the stock to trade around $101 based on their discounted cash-flow analysis. “With new products in the pipeline and a strong demand outlook, we think Stratasys is expecting gross margin expansion”. The analysts also warns about competitive pressures in the 3D printing market keeping Stratasys' gross margins in check.
- Jefferies - maintains Buy rating, lowered Statrasys' price target from $155 to $140. The firm Increased June GAAP EPS from ($0.01) to $0.01 while non-GAAP EPS was lowered from $0.46 to $0.43. Jefferies likes the strong patent position of the company and also noted the significant shares of the consumer space through the MakerBot acquisition.
Amid the seeming pessimism, Stratasys shares are holding up relatively well in Monday's after-noon session, currently down about 0.2 percent to $89.58.
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