Analyst Takes a New Perspective on 3D Printing
Canaccord Genuity reiterated a Buy rating on Stratasys Ltd. (NASDAQ: SSYS), expecting its core business to deliver at least 25% growth in 2015.
24/7 Wall St. recently pointed out that the number of shares short in three of four of the 3D printing stocks we follow rose for the January 30 settlement date. All four of them saw short interest increase in the period before that. Overall, many investors seem more bearish on that industry. However, Canaccord Genuity would beg to differ about Stratasys Ltd. (NASDAQ: SSYS).
The firm continues to expect strong fundamentals for Stratasys, which are implied in its 2015 outlook, and as a result Canaccord Genuity reiterated a Buy rating on the stock.
Stratasys shook investors earlier this month when it released 2015 fiscal year revenue guidance that was below consensus estimates. The company said its plan was to invest more in order to offer a broader range of products ahead of what it sees as manufacturers that are poised to increase adoption of additive manufacturing in various industries. In other words, Stratasys is boosting spending to maintain growth.
However, Canaccord Genuity expects the core business to deliver at least 25% growth in 2015, leaving modest hurdles for the company’s other segments. According to the firm’s research, a 2015 target of $85 million for Solid Concepts/Harvest would be conservative. On the core business, the research indicates strong North American demand for professional and production printers. Asia is expected to remain a bright spot as well, while Europe was only 22% of total revenue in the most recently reported quarter.
ALSO READ: 4 Top Tech Stock Picks From CIOs
Canaccord Genuity reiterated its estimates and price targets as:
- The revenue estimate for the fourth quarter of 2014 remains unchanged at $215.7 million, and the 2014 full-year revenue estimate is unchanged at $749 million. The full-year 2015 revenue estimate remains unchanged at $950 million.
- The earnings per share (EPS) estimate for the fourth quarter remains at $0.47, and the 2014 full-year EPS estimate is unchanged at $2.00. The full-year 2015 revenue estimate remains unchanged at $2.15.
- The price target remains unchanged at $100.
Shares of Stratasys were up 3% at $63.40 in the second half of Thursday’s trading session. The stock has a consensus analyst price target of $78.05 and a 52-week trading range of $51.55 to $131.09.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
