J.P. Morgan Upgrades Stratasys on "Compelling" Growth in 3D Manufacturing Space

In a report published Monday, J.P. Morgan analyst Paul Coster upgraded

from Neutral to Overweight and maintained the $125.00 price target. Coster noted the “compelling” growth prospects for the 3D printing/ additive manufacturing space. The analyst wrote that Stratasys is “best-in-class pure-play and therefore a core holding for tech growth investors.” J.P. Morgan commented that the 21% pullback year-to-date is a good entry-point for short-term and long-term traders. The analyst expects an approximate 17% return through year-end. J.P. Morgan maintained 2014 PF EPS estimate of $2.21 on $668.6 million in revenue. The analyst forecasts a 2015 PF EPS of $3.13 on $816.7 million in revenue. Coster added a three year view commenting, “we believe SSYS can grow PF EPS at about 25% CAGR on a similar top-line growth-rate. We view the risk of lower gross and operating margins, originating in investment activity and competitive pressure, as offset by upside risk to revenue.” Shares of Stratasys closed at $106.45 on Friday.