Lake Street Capital Markets Adjusts Outlook on Stratasys Inc. (NASDAQ: SSYS) - Analyst Lowers Price Target to $11.00
Lake Street Capital Markets has revised its outlook on Stratasys Inc. (NASDAQ: SSYS), a leading provider of 3D printing solutions. The firm's analyst has decreased the price target on the company's shares to $11.00, down from the previous $15.00 target, while maintaining a Buy rating on the stock.
The analyst believes that Stratasys has the potential to emerge as a consolidator in the 3D printing sector once market conditions improve. There is also anticipation of significant latent demand within the industry, which could be unlocked with anticipated future rate cuts by the Federal Reserve.
Despite trading at a discount compared to its peers, Stratasys is recognized for various catalysts that could drive growth, including new product cycles, a competitive margin profile, and the opportunity to convert demand backlog into orders.
Investors who are patient may find an attractive opportunity in Stratasys shares due to the current low valuation. Additionally, Stratasys is undertaking a share buyback of up to $50 million and implementing a workforce reduction of approximately 15% to achieve $40 million in annual cost savings by 2025.
Following Stratasys' second-quarter earnings report, several analysts adjusted their price targets. Loop Capital, Lake Street Capital Markets, and Cantor Fitzgerald all made revisions, reflecting their views on the company's performance and potential.
Despite challenges such as a decline in product revenue and hardware sales, Stratasys remains optimistic about its long-term growth, aiming to generate positive cash flow by Q4 2024 and reach $1 billion in revenue by 2026.
Analysis: Stratasys Inc. presents an intriguing investment opportunity with potential for growth in the 3D printing sector. The company's restructuring initiatives and strategic investments indicate a focus on long-term sustainability. Investors should consider the analyst recommendations, company's financial health, and market trends before making investment decisions.