Stratasys rallies on bullish UBS launch; 3D Systems started at Neutral

|By:, SA News Editor

UBS' Steve Milunovich has launched coverage on Stratasys (SSYS +3.9%) with a Buy and $125 PT, and rival 3D Systems (DDD +0.4%) with a Neutral and $62 PT.

Milunovich prefers Stratasys on account of "better execution, a narrower focus, and immediate upside potential from MakerBot." He sees MakerBot, which accounted for 16% of Stratasys' Q4 sales, growing 70% this year.

At the same time, Milunovich likes 3D Systems' broad product line, M&A efforts (not everyone is a fan), and metal printing exposure. He's also upbeat about its long-term ability to grow aerospace, healthcare, and automotive sales.

Citron Research and Credit Suisse argued Stratasys is a better investment than 3D Systems in January.