UPDATE: J.P. Morgan Upgraded Stratays to Overweight as a Leader in 3D Markets
In a report published Thursday, J.P. Morgan analyst Paul Coster upgraded Stratays, Ltd. (NASDAQ: SSYS) from Neutral to Overweight.
J.P Morgan noted that Stratays' channel checks for 3D printing has gone mainstream across vertical markets as the printers save time and money for designers. Coster reported that “SSYS is the leader in the professional, production, and entry-level segments of the 3D market.” The Gartner report also presented potential increase in estimates with a forecasted 95% CAGR growth in 3D printers from 2012-2017.
Coster further commented that “the recent equity raise strengthens SSYS's position within the 3DP industry and removes an overhang regarding paying for future MakerBot earn-outs.” With the stock trading at 37 times the CY14E PF EPS of $2.51, J.P. Morgan reported that the stock appears undervalued, thus raising its rating. The analyst's December 2014 PT is $101.50.
Stratays closed at $92.78 on Wednesday.
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