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.