UPDATE: Brean Capital Reiterates On Stratasys On Softer OM & Lower Visibility

In a report published Thursday, Brean Capital analyst Ananda Baruah reiterated a Buy rating on

, but lowered the price target from $140.00 to $125.00. In the report, Brean Capital noted, “While we continue to like SSYS's positioning, it just got more challenging to develop conviction around a '15 margin case, and subsequently appreciation potential. SSYS '15 guidance will come in January on the Dec Q EPS call. Softer-than-anticipated Sep Q OMs and lots of conversational energy on the call regarding ongoing Opex investment (without providing business model context for '15) have injected a new uncertainty about how to gauge OM dynamics in '15, an important metric for the stock at this point. As such, we're lowering our TP to $125 from $140 (17% appreciation, and 42x our '15 EPS) and our '15 EPS to $3.05 from $3.20 (Street was $3.13 heading into the call). Our '15 revenue actually increases ~$50M to $1.05B, but we're lowering our OM forecast to 17% from 19%, or 100bps expansion from our new '14 forecast of 16%, vs. our prior 200bps expansion in '15 from 17%. Our DCF suggests ultimate cash flow value of $140 - $150 with reasonable assumptions.” Stratasys closed on Wednesday at $108.16.