Cantor raises Stratasys price target to $15 from $12

Published 04/03/2025, 16:02
© Stratasys PR

On Tuesday, Cantor Fitzgerald’s Troy Jensen increased the price target for Stratasys Inc. (NASDAQ:SSYS) stock to $15.00, up from the previous target of $12.00, while maintaining an Overweight rating. The adjustment follows a robust fourth quarter for the 3D printing company, which demonstrated notable profitability. According to InvestingPro data, the stock has shown strong momentum with a 57.79% gain over the past six months, despite current analysis indicating the stock is slightly undervalued.

Jensen’s commentary highlighted the strength of Stratasys’ fourth quarter, commending the company’s profitability. The focus now shifts to the upcoming earnings call, scheduled for March 5, where analysts expect Stratasys to provide a revenue outlook for 2025. While the company maintains a healthy liquidity position with a current ratio of 3.07, Jensen anticipates a cautiously optimistic forecast, with revenue likely to rise by low-single digits year-over-year. InvestingPro analysis reveals 8 additional key insights about Stratasys’s financial health and growth prospects.

The analyst also pointed to the strategic use of the $120 million in capital raised from Fortissimo as a topic of interest. Although not expected to be directly addressed during the earnings call, speculation surrounds potential acquisitions by Stratasys. Questions linger about whether Desktop Metal (NYSE:DM) might be a target once again, or if there could be a move to acquire Nano Dimension (NASDAQ:NNDM), especially given the recent changes to NNDM’s board with activist-appointed professionals.

Stratasys’ plans for the capital raise and its impact on the company’s growth strategy remain a key point of curiosity among investors and industry watchers. The upcoming earnings call is expected to shed light on the company’s financial trajectory and strategic initiatives for the coming year.

In other recent news, Stratasys has reported preliminary adjusted net income for the fourth quarter between $8.1 million and $8.6 million, exceeding Bloomberg’s consensus estimate of $7.02 million. This financial update coincides with Fortissimo Capital’s agreement to purchase approximately 14% of Stratasys at $10.30 per share, with the transaction expected to close in the second quarter of 2025. Additionally, Stratasys forecasts achieving at least 10% EBITDA margins for the full year 2025 with moderate revenue growth, while maintaining an 8% EBITDA margin at current revenue levels. The company continues to focus on enhancing its profitability and has projected positive cash flow from operating activities for the full year 2025.

Cantor Fitzgerald has maintained an Overweight rating on Stratasys, with a steady price target of $12.00, reflecting confidence in the company’s financial outlook. Meanwhile, Stratasys Direct has achieved ISO 13485 certification for its Tucson facility, marking a significant milestone in meeting quality management standards for medical device manufacturing. This certification is expected to bolster the adoption of 3D-printed components in the medical industry, enhancing innovation and potentially improving patient outcomes.

Stratasys has also collaborated with Siemens (ETR:SIEGn) Healthineers to advance CT imaging with the creation of anatomically precise, 3D-printed phantoms. This development aims to improve diagnostic accuracy and the performance of CT scanners. These recent developments highlight Stratasys’s strategic initiatives to strengthen its position in the 3D printing and medical sectors.

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