Canaccord Cuts Stratasys Price Target Following Pre-announcement Forecast

In a research report released Monday, Canaccord Genuity analyst Bobby Burleson maintained a Buy rating on Stratasys (NASDAQ:SSYS), but reduced the price target to $100 (from $120), which still implies an upside of 25% from current levels. The report follows the company’s pre-announcement, which was released Monday night.

Burleson wrote, “We are lowering our estimates and price target based on a pre-announcement by SSYS Monday night. While we previously trimmed our estimates based on concerns over higher opex in 2015, we did not expect a revenue shortfall given positive reseller feedback on core business in North America for industrial machines. However, anemic MakerBot growth Y/Y and some softness in Europe look to have contributed to the top line shortfall.”

The analyst added, “Our new price target of $100 is based on 5x forward price to sales, an achievable multiple in our view considering healthy top line growth of 27% in management’s 2015 forecast.”

Sprint Corporation provides wireless and wireline communications services to consumers, businesses, and government users in the United States, Puerto Rico, and the U.S. Virgin Islands. 

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