Ahead of the closing bell, Stratasys, Ltd. (NASDAQ:SSYS) shares are falling more than 10% to $32.70 after the 3D printing company posted second quarter losses. Stratasys posted a GAAP net of ($0.55) per diluted shares, missing consensus estimate of $0.15 by a long shot and marking a stark drop from the ($0.00) per diluted share the company posted in the same quarter of last year.
Subsequently, Canaccord Genuity analyst Robert Burleson reiterated a Hold rating on SSYS with a price target of $35, which represents a potential upside of 7% from where the stock is currently trading.
Burleson provided commentary on the earnings results, noting, “Following this morning’s soft Q3 outlook and retracted 2015 guidance, we are reiterating a HOLD rating and suggest investors remain on the sidelines until our research indicates recent demand weakness to be short term. Key concerns out of the conference call are the plausibility of management’s long term growth target of 25%+ and the fate of MarketBot. Our estimates are lowered through 2016, and our price target remains $35. We could get more constructive on accelerating hardware and parts demand, or broad restructuring.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Bobby Burleson has a total average return of 1.6% and a 47.6% success rate. Burleson has a -28.2% average return when recommending SSYS, and is ranked #1602 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 82.8%, the stock’s consensus target price stands at $59.91.