Stratasys (SSYS) May See Slight Cannibalization with MakerBot Purchase, Analyst Says (DDD)
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Price: $9.82 +1.55%
Rating Summary:
16 Buy, 14 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 50
Rating Summary:
16 Buy, 14 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 14 | New: 50
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Stratasys (Nasdaq: SSYS) is coming off of a positive session on a largely negative day following its announcement that it agreed to acquire MakerBot.
JPMorgan's Paul Coster noted that the deal "probably makes sense" for Stratasys and positions it to gain entry-level market share.
Coster thinks that a risk associated with the deal includes Stratasys being drawn into a pricing battle in the consumer-level segment, cannibalizing higher-margin professional product sales.
The deal is an "incremental negative" for peer 3D Systems (NYSE: DDD) with increased competition for the company's Cube product line. Notably, 3D Systems ended Thursday's session down about 5.5 percent.
Coster has Stratasys and 3D Systems both at Neutral. Both are higher in early trading Friday.
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 $85.60 yesterday.
JPMorgan's Paul Coster noted that the deal "probably makes sense" for Stratasys and positions it to gain entry-level market share.
Coster thinks that a risk associated with the deal includes Stratasys being drawn into a pricing battle in the consumer-level segment, cannibalizing higher-margin professional product sales.
The deal is an "incremental negative" for peer 3D Systems (NYSE: DDD) with increased competition for the company's Cube product line. Notably, 3D Systems ended Thursday's session down about 5.5 percent.
Coster has Stratasys and 3D Systems both at Neutral. Both are higher in early trading Friday.
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 $85.60 yesterday.
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