Needham & Company Upgrades Stratasys (SSYS) to Buy

March 5, 2013 7:58 AM EST
Get Alerts SSYS Hot Sheet
Price: $19.88 +2.21%

Rating Summary:
    11 Buy, 15 Hold, 3 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 34 | New: 34
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Needham & Company upgraded Stratasys Inc. (NASDAQ: SSYS) from Hold to Buy with a price target of $80.00 following solid Q4 results and better than expected 2013 guidance.

The firm comments, "SSYS' first EPS report since the merger in early December with Objet, as expected, featured a good deal of merger-related noise. However, on pro forma combined basis, Q4 revenues were up 23% y/o/y with solid high-teens operating margins. Mgmt expects revenues to be up 20%-24% in 2013, with EPS guidance meeting Street expectations. SSYS shares climbed 7% yesterday, with investors reacting positively to the strong pro forma 2012 financials and what appears to be reasonable 2013 guidance, assuming the integration goes according to plan. We believe industry demand remains strong, the integration of the merger appears to be on track, and we expect increased operating leverage to drive earnings growth over the next two years."

The firm trimmed FY13 EPS from $1.95 to $1.85 and introduced FY14 EPS of $2.52.

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 $68.82 yesterday.

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