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. 

Stay Ahead of Everyone Else

Get The Latest Stock News Alerts