Oppenheimer's Meeting With Stratasys Management Positive Enough To Justify Outperform Rating

In a report published Wednesday, Oppenheimer analyst Holden Lewis maintained an Outperform rating and price target of $50 on

. Following meetings with the management, the analyst believes that there are sequential catalysts for the stock through 2015. The analyst also believes that stock is attractively valued at present. "We sense 2Q15 may be a bit better if only on seasonality. Stratasys' channel should be trained on new products and re-focused in 2H15. Costs have come out, especially at MakerBot. Forex is less hostile. Rate of improvement is unclear, but we don't think things are worsening," Lewis reported. The company continues to target operating margins of 18-23 percent over time. Given the lower than expected 2015 margin and the higher than anticipated top line volatility, the analyst expects Stratasys to adopt a more investor friendly approach to spending and M&A. In addition, the Oppenheimer report said, "Bre Pettis, co-founder of MakerBot, left Stratasys with the spin-off of his incubator. Most execs have left, the workforce has been cut, and stores closed. Whether the new structure is right for MakerBot or not is unclear, but at minimum it has been streamlined." The company intends to have a "final parts technology" within the next three years. Stratasys is also re-designing software to improve ease of use. The company also has new products and enhancements in the pipeline for 2015. "Demand flat-lined in 1Q15, but Stratasys' model and product development efforts haven't," Lewis added.