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Tuesday, shares of Stratasys Inc. (NASDAQ:SSYS), currently trading at $8.73 with a market cap of $627 million, continued to be in focus as Cantor Fitzgerald reiterated its Overweight rating and $14.00 price target on the company. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value metrics. The firm’s analyst highlighted the ongoing situation with Desktop Metal and the potential outcomes that could affect Stratasys.
According to the analyst from Cantor Fitzgerald, the "Desktop Metal drama" is nearing an end, with the expectation that Nano Dimension (NASDAQ:NNDM) will allow Desktop Metal to file for bankruptcy. This move would serve to eliminate debt and facilitate the sale of assets through bankruptcy court. Stratasys, with its strong balance sheet showing more cash than debt and a healthy current ratio of 3.07, is posited as the most likely entity to acquire some or most of Desktop Metal’s assets. Discover more financial insights with InvestingPro, which offers comprehensive analysis and 8 additional ProTips for Stratasys.
The analyst also brought to light the possibility of Fortissimo Capital making a play for Nano Dimension’s stake in Stratasys. There is a belief that Fortissimo might try to acquire this position through a tender offer, potentially reaching the 35% ownership threshold rapidly. With impressive gross profit margins of 48.5% and annual revenue of $572 million, Stratasys represents a significant player in the 3D printing market.
Stratasys, a leader in 3D printing and additive manufacturing solutions, could stand to benefit from the acquisition of Desktop Metal’s assets, which would likely complement its existing product portfolio and market position.
The reiteration of the Overweight rating and the $14.00 price target by Cantor Fitzgerald comes as Stratasys navigates through a landscape of industry consolidation and strategic acquisitions, with the potential moves by Nano Dimension and Fortissimo Capital being closely watched by market participants.
In other recent news, Stratasys Ltd. has secured a $120 million investment from Fortissimo Capital, resulting in Fortissimo acquiring a 14% stake in the company. This financial move is expected to strengthen Stratasys’s balance sheet and support its strategic growth initiatives. In another development, Stratasys announced a partnership with trinckle 3D GmbH to integrate trinckle’s fixturemate™ software into Stratasys’ GrabCAD Print™ Pro software. This collaboration aims to simplify the creation of custom 3D-printed fixtures, reducing lead times and costs for manufacturers. Additionally, Stratasys is set to showcase its new 3D printing solutions, including the Neo800+ stereolithography printer and PolyJet ToughONE material, at the RAPID + TCT event in Detroit. The Neo800+ printer offers up to 50% faster print speeds, while the ToughONE material is designed for enhanced impact resistance and flexibility. Stratasys continues to expand its product offerings with the release of the PolyJet ToughONE White material, which facilitates functional prototyping and end-use parts production. These developments highlight Stratasys’s ongoing commitment to advancing its technology and expanding its market presence in the additive manufacturing industry.
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