Seeking Alpha

Stratasys rallies following Gabelli upgrade; peers also sharply higher

  • Gabelli's Hendi Susanto has upgraded Stratasys (SSYS +4.9%) to Buy, and predicts the 3D printer maker will deliver 22% long-term revenue growth (compares with a company target of 20%+ organic growth).
  • Susanto also expects cost cuts/M&A synergies to lift Stratasys' op. margin, and praises the company's "focus on value-added manufacturing applications and prototypes." He respectively assigns 2014 and 2015 "private market values" of $122/share and $149/share; those numbers translate into a steep valuation of 35x estimated EV/EBITDA.
  • 3D printing stocks are once more making a big move in the same direction: 3D Systems (DDD +3.2%), ExOne (XONE +4.7%), and Voxeljet (VJET +4.3%) have joined Stratasys in posting big gains. So has custom industrial parts maker Proto Labs (PRLB +6%), whose status as a 3D printing play has often been contested.
  • 3D printer makers moved higher on Thursday after JPMorgan raised its 3D Systems PT and revenue estimates.
From other sites
Comments (6)
  • Esekla
    , contributor
    Comments (3778) | Send Message
     
    I understand that these stocks seem to have been viewed as a group by the market, but that's changing. In the case of XONE, options premiums haven't been sufficient to offset the rebate rate as examined here:

     

    http://bit.ly/1hXCcZ9

     

    That might have more to do with today's rise than an upgrade for a "peer" that isn't really very similar at all.
    23 Dec 2013, 01:57 PM Reply Like
  • hneumann
    , contributor
    Comments (632) | Send Message
     
    Maybe most investors treat them similar ? Rising optimism about the future of 3D printing will be seen as in general; for the industry also. VJET and CAMT are also sharply up today.
    23 Dec 2013, 02:36 PM Reply Like
  • Esekla
    , contributor
    Comments (3778) | Send Message
     
    They have treated the same, but that is inappropriate as the underlying technology and end markets are rather different. The market is slowly beginning to differentiate, as is shown by XONE outpacing the rest despite no significant news (they promoted a long-time employee), and the upgrade being for SSYS. DDD got hold reiterated from Gabelli and VJET has been spending its IPO proceeds on real estate like drunken sailor.

     

    Also, grouping CAMT into this category is a stretch, even by the overly loose historical standards:

     

    http://seekingalpha.co...
    23 Dec 2013, 02:55 PM Reply Like
  • jpmj4847
    , contributor
    Comments (546) | Send Message
     
    Go to all the 3d companies in this field of technology, and the end markets...Very different but, endless....Good for all. I'm long and remaining. Thanks again: SA, authors, and the many comments by your followers. jpmj4847
    23 Dec 2013, 04:48 PM Reply Like
  • rvoget
    , contributor
    Comment (1) | Send Message
     
    How do I ease into buying DDD when it is at its current high. How much of a correction is coming in the next 1-2 months?
    24 Dec 2013, 01:58 AM Reply Like
  • zatz347
    , contributor
    Comments (2) | Send Message
     
    DDD A Stock Split @ 2 For 1 What Do You Think And At What Price?
    24 Dec 2013, 06:26 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs