Analyst Warns Stratasys Stock Moving At Odds With Fundamentals


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


Shares of Stratasys, Ltd. (NASDAQ:SSYS) lost more than 8 percent Monday morning after analysts at Goldman Sachs turned bearish on the stock.Goldman Sachs' Matthew Cabral downgraded the 3D printing company from Neutral to Sell with an unchanged $20 price target, which implies a downside of nearly 30 percent. While the analyst did acknowledge the company's business is indeed showing signs of stabilization after two years of declines, the fact remains it still faces multiple headwinds.

Competitive Concerns

ENTER TO WIN $500 IN STOCK OR CRYPTO

Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!

Stratasys is facing competitive threats not only from "deep-pocketed" industrial giants but also innovative startups, Cabral noted. Of particular note, General Electric Company (NYSE:GE) has spent more than $1 billion to acquire multiple 3D printing companies and is targeting a $1 billion revenue run rate by 2020. Some of the start-ups that will challenge Stratasys includes Carbon, XJet and Markforged continue to "drive technical innovation."

Meanwhile, Stratasys' competitive positioning isn't as impressive as others since it lacks exposure to the higher-growth technologies segment and has no direct metal offerings, the analyst added. This naturally places an additional risk to the company's longer-term positioning within the entire industry (check out Cabral's track record).

Margin Risks


FREE REPORT: How To Learn Options Trading Fast

In this special report, you will learn the four best strategies for trading options, how to stay safe as a complete beginner, ​a 411% trade case study, PLUS how to access two new potential winning options trades starting today.Claim Your Free Report Here.


Pricing within the 3D printing industry needs to be "meaningfully lower" than where it is today to drive adoption, Cabral added. In fact, pricing remains the most important factor which is holding back 3D printing adoption and any price cuts in Stratasys' products to gain market share will weigh on its gross margins profile.

Bottom Line

After a near 70-percent gain since the start of 2017, Stratasys' stock may have run up too fast given the multiple headwinds and gross margin risks.

At last check, shares of Stratasys were down 12.15 percent at $24.27.

Related Links:Reebok Looks To 3D Printing 'Liquid Factory' To Regain Footwear Traction Organovo Signs Distributor Deal After Positive Data For Bio-Printed Liver Tissue


Crypto Whales Are Loading Up — Are You?

New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.


Posted In: Analyst ColorNewsShort IdeasDowngradesAnalyst RatingsMoversTechTrading Ideas3D printers3D PrintingGoldman SachsMatthew Cabral