Stratasys (SSYS) PT Chopped to $38 at Needham & Company, Remains Constructive on Expected Industry Recovery

Needham & Company analyst James Ricchiuti lowered his price target on Stratasys Inc. (NASDAQ: SSYS) to $38.00 (from $46.00) following results and pulled 2015 guidance but maintained a Buy rating. Despite the challenges the analyst is conviced that the additive manufacturing industry will return to a historical 20%-plus growth rate as early as next year.

Ricchiuti commented, "SYS again surprised on the downside, missing consensus EPS, withdrawing its 2015 guidance and providing much lower than expected Q3 guidance. So, why remain constructive on the name? The industry has begun to acknowledge, as SSYS did today, that demand in 2013 and 2014 was inflated unrealistically, resulting in the current painful period of retrenchment as customers digest investments in equipment and capacity. Our view is that the additive manufacturing industry will return to a historical 20%-plus growth rate, we believe as early as next year. We continue to regard SSYS as an industry leader. We believe interest in the name will return as SSYS begins to deliver on the growth and profitability that we believe the business is capable of generating, although clearly this will require patience on the part of investors."

The firm cut FY 2015 EPS from $1.20 to $0.48 and FY 2016 EPS from $1.70 to $1.36.

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 $36.49 yesterday.

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