FBR Positive on Stratasys (SSYS) Amid Airbus, HP (HPQ) News; Reaffirms 'Outperform' Rating
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FBR & Co. affirms Stratasys (Nasdaq: SSYS) with an Outperform rating and $29 price target after announcing that Airbus standardized its Stratasys additive material solution.
The firm commented today:
From a higher level, this announcement makes it apparent that industrial manufacturers are inching closer to fuller incorporation of additive techniques, which would represent a significant catalyst not just for Stratasys but for the industry as a whole. Yet the announcement from Stratasys, in our view, shows that they are at the leading edge of this trend and should benefit meaningfully.
FBR also noted positive 3-D printer sentiment from HP's (NYSE: HPQ) investment conference on Thursday:
Yesterday, printing leader HP held an analyst day in NYC, and discussed at length its outlook for the 3D printing industry. The company noted that they expect the addressable market to grow at a ~30% CAGR to $18 billion by 2021, and there could be upside to that number depending on how rapidly additive material cost declines relative to traditional subtractive material cost. We estimate that today, certain additive materials could cost ~5x subtractive materials.
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