Dougherty Sees Positive Q2 Results at Stratasys (SSYS), Upgrades to Buy

Dougherty & Co upgraded Stratasys Inc. (NASDAQ: SSYS) from Neutral to Buy with a price target of $45. Analyst Andrea James noted positive channel checks and the company's historically low multiple, and she was positive on Q2 performance, saying they "will not disappoint."

"Stratasys has fought industry headwinds and made missteps that cost it two-thirds of its share price. Shares have been re-rated as a low-margin industrial, but this re-rating should correct as this disruptive technology company builds back credibility," said James.

"We downgraded SSYS in April over concerns that the poor sales climate and continual fallout from the over-priced MakerBot acquisition would plague the stock. Since that time ... North American channel checks indicate the sales climate has improved ...The stock corrected dramatically and is now trading at a historically low P/E multiple ... Stratasys has gained market share in the aerospace and medical verticals, owing to its strategy ... We've assessed that HP will compete more directly with competitors than with Stratasys," continued the analyst.

James added, "We project Q2 results will not disappoint, and we see a strong pipeline into the back half of the year."

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 $34.47 yesterday.

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