Brean Capital Remains Sidelined on Stratasys, Ltd. Following 2Q Earnings Results
In a research report issued today, Brean Capital analyst Ananda Baruah maintained a Hold rating on Stratasys, Ltd. (NASDAQ:SSYS), after the 3D printing company released its second-quarter earnings results, posting revenue and EPS of $182.3 million and $0.15, which were in line with the Street’s estimates of $132.1 million and $0.16. However, excluding the non-recurrent $4.8 income tax provision, SSYS generated EPS of $0.06, lower than the Street of $0.16.
Baruah noted, “SSYS and the plastic / polymer facing 3D industry participants continue to navigate a digestive period of softer demand ahead of new innovation. In this context, visibility remains quite low, and SSYS believes it best to remove ’15 guidance and to provide Sep Q guidance. We believe that SSYS’s remarks suggest ’15 EPS of $0.40 – $0.50, and our estimates suggest ’16 EPS of $0.80 – $1.00 is a reasonable place to be currently. In this context, we believe the stock should trade between $20 – $35 (20x – 35x ’16 EPS) until further visibility can be ascertained.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Ananda Baruah has a total average return of -2.6% and a 42.8% success rate. Baruah has a -22.4% average return when recommending SSYS, and is ranked #3385 out of 3721 analysts.
Out of the 20 analysts polled by TipRanks, 12 rate Stratasys stock a Hold, while 8 rate the stock a Buy. With a return potential of 95%, the stock’s consensus target price stands at $59.91.