Stratasys stock price target cut to $14 by Cantor Fitzgerald

Published 06/03/2025, 16:00
© Stratasys PR

On Thursday, Cantor Fitzgerald adjusted its financial outlook for Stratasys Inc. (NASDAQ:SSYS), lowering the price target from $15.00 to $14.00. Despite the reduction, the firm maintained an Overweight rating on the 3D printing company’s shares, which currently trade at $9.68. The revision follows Stratasys’ fourth-quarter results for 2024, which matched preliminary figures released earlier in the year. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations, with analysts maintaining price targets between $13 and $15.

Troy Jensen from Cantor Fitzgerald provided insights into the company’s performance and future expectations. Stratasys’ revenue growth for 2025 is projected to be 0.9% year-over-year, following a challenging period where revenue declined 8.79% in the last twelve months. While the current gross profit margin stands at 44.86%, the non-GAAP gross and operating margins are forecasted at 49.0% and 4.5% respectively, falling short of Cantor Fitzgerald’s expectations. These figures are pivotal as they reflect the company’s profitability and operational efficiency. InvestingPro subscribers can access 8 additional key insights about Stratasys’s financial health and growth prospects.

The analyst noted that Stratasys had a positive operating and free cash flow in the fourth quarter of 2024 and anticipates these to surpass the levels achieved in 2024 during 2025. This financial health is crucial for the company’s ability to invest in growth and innovation without relying excessively on external financing. The company maintains strong liquidity with a current ratio of 3.07, and notably holds more cash than debt on its balance sheet.

An important aspect of Stratasys’ business is its manufacturing revenue, which has shown a steady increase. In 2024, this segment accounted for 36% of the total revenue, up from 34% in 2023 and a significant jump from just over 25% in 2020. This growth trajectory indicates a strengthening of the company’s position in the manufacturing sector.

Jensen also highlighted the positive market response to Stratasys’ F3300 platform, emphasizing its ongoing momentum. The platform’s robust customer reception is a testament to its competitive edge and appeal in the 3D printing market.

In other recent news, Stratasys Ltd reported its financial results for the fourth quarter of 2024, surpassing earnings per share (EPS) expectations with an actual EPS of $0.12 compared to the forecasted $0.10. The company’s revenue for the quarter was $150.4 million, slightly above the anticipated $149.88 million, although this represented a 3.8% decline from the same quarter last year. Stratasys has projected its 2025 revenue to be between $570 million and $585 million, with expectations of sequential quarterly growth. The company anticipates non-GAAP gross margins between 48.8% and 49.2% and adjusted EBITDA ranging from $44 million to $50 million.

Stratasys has also introduced several new products and materials, emphasizing its focus on expanding product offerings in key sectors such as aerospace, defense, dental, and tooling. Furthermore, the company maintains a strong cash position with $150.7 million, and it is set to be bolstered by a $120 million investment from Fortisimo Capital, expected to close in the second quarter. Despite these positive developments, Stratasys shares experienced a decline, reflecting investor concerns over broader market conditions and year-over-year revenue decline.

In addition to its financial performance, Stratasys has been recognized for its innovation in the 3D printing sector, highlighted by its recent designation as the official 3D printing partner of NASCAR. The company has also strengthened its leadership team with the promotion of Andreas Langfeld to Chief Revenue Officer, further enhancing its global go-to-market strategy. Analysts from firms such as Cantor Fitzgerald have taken note of the company’s strong market position and strategic focus on high-value manufacturing applications.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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