Stratasys (SSYS) PT Trimmed at Needham & Company Post Q3; 'Buy' Maintained

Needham & Company analyst James Ricchiuti reiterated a Buy rating but trimmed his price target on Stratasys Inc. (NASDAQ: SSYS) to $130.00 (from $138.00) following Q3 results which prompted margin concerns.

Ricchiuti commented, "SSYS shares fell sharply after posting stronger than expected Q3 revenues, including impressive 35% organic growth. The shares, which had been relatively strong ahead of the Q3 report, appear to be reacting to margin concerns, including stepped-up investment in the business and lower service gross margins associated with the recently acquired 3D printed parts businesses. Q3 EPS were essentially in line with expectations as a result of a sharply lower tax rate. Mgmt reiterated its 2014 revenue and EPS guidance, but investors appear unimpressed given concerns about operating leverage. We view the higher levels of investment in the business over the near term as necessary given the rapid growth trajectory of the business and as SSYS continues to drive new product and market development."

The firm raised FY 2014 EPS from $2.28 to $2.30 and FY 2015 EPS from $3.14 to $3.15.

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 $121.25 yesterday.

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