Gabelli Upgrades Stratasys Inc. (SSYS) to Buy; Sees LT Growth of 22%

December 23, 2013 12:36 PM EST
Get Alerts SSYS Hot Sheet
Price: $19.76 -0.6%

Rating Summary:
    11 Buy, 15 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Gabelli upgraded Stratasys Inc. (NASDAQ: SSYS) from Hold to Buy. Analyst Hendi Susanto sees long term growth of 22%.

"We are projecting long-term growth rates of 22%, compared to Stratasys' goal of 20%+ annual organic growth, and assume operating margin expansion primarily stemming from cost synergies and cost reduction initiatives," said Susanto.

"We favor Stratasys' focus on value-added manufacturing applications and prototypes, and potential growth and margin expansion opportunities," added the analyst. "We are valuing Stratasys at higher EV/EBITDA estimates of 35x in 2014 and 2015, compared to our conservative multiples of 20x. We calculate private market values of $122 in 2014 and $149 in 2015. While we desire more margin of safety, we do not anticipate potential negative catalysts and expect positive market adoption to remain strong in the near future."

For an analyst ratings summary and ratings history on Stratasys Inc. click here. For more ratings news on Stratasys Inc. click here.

Shares of Stratasys Inc. closed at $125.87 yesterday.

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