Stratasys (SSYS) Numbers Cut at Needham & Company Amid Warning But 'Buy' Maintained

Needham & Company analyst James Ricchiuti slashed estimates and his price target on Stratasys Inc. (NASDAQ: SSYS) to $54.00 (from $70.00) following the company pre-announcement but maintained a Buy rating saying there is little value in downgrading the stock at this point.

Ricchiuti commented, "SSYS after the market close yesterday warned that Q1 revenues and EPS would be well below consensus, the second consecutive downside preannouncement from the company in three months and the second major earnings warning from a major industry player in less than a week. Q1 revs are likely to be 13-14% below consensus, reflecting Fx and softer end-market demand, while SSYS is expected to be slightly profitable on a non-GAAP basis, well below consensus expectations. SSYS shares are likely to be pummeled on the open. As with SSYS' largest competitor, we see little value in downgrading at what we expect will be a bottom, though we acknowledge it will likely take some time before investor confidence in the sector and in SSYS in particular recovers."

The firm is cutting 2015 non-GAAP EPS estimate to $1.20 from $2.10 on revenues of $801M. They are lowering 2016 non-GAAP EPS estimate to $1.70 from $2.60 on revenues of $987M.

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 $51.30 yesterday.

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