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Stratasys 1 Year Later: Penetrating Its Growth Markets

Nov. 01, 2017 12:28 PM ETStratasys Ltd. (SSYS)4 Comments
Faloh Investment profile picture
Faloh Investment


  • This is a one-year update following my article "Stratsys: Earning Cash Hand Over Fist On Product And Service Sales."
  • New model F123 3D Printer for rapid prototyping enjoys a successful launch with over 1,000 sales, acquiring more than 500 new customers.
  • Stratasys' uses in aerospace component manufacturing processes receives further adoption, increasing market penetration.

During August of 2016 I rated Stratasys Ltd. (NASDAQ:SSYS) a buy (price $20.90) at the conclusion of my report on their turnaround efforts in Stratasys Ltd: Earning Cash Hand Over Fist On Product And Service Sales.

Since the previous article's publication, the stock's price climbed to over $25.00 as my estimation of SSYS's solid financial footing was reinforced in subsequent earnings reports. The company's market leadership in the 3D printing industry was made more evident by the firm's successfully launched F123 rapid prototyping device which found a market in hundreds of new customers and upgrades by present customers. This year the company also has enjoyed a contract award from Airbus to produce certain components for aircraft. Since this year's high of $30.88 the stock has retreated substantially to $22.53 per share.

In my view, today's ask of $22.53 per share represents a fair price for patient long-term investors.

Here is the meat of your update on Stratasys one year later.

News And Views


Aerospace is touted by SSYS management as a mega-growth opportunity for the company. I agree with them on this point. However the adoption of 3D printing manufacturing methods from the aerospace segment will continue to experience a large amount of friction before coming "online" and delivering massive profits to the company.

The 3D printing value proposition to the aerospace industry is confirmed by Airbus and other manufacturers' and their growing adoption of this technology.

However, the high hurdles of safety and reliability stress testing, which are time consuming and must be done with special thoroughness due to the new technology 3D printing really is, make a significant drag on the pace at which the SSYS aerospace business will continue to grow.

The good news is that over the coming years aerospace engineers will continue to adopt

This article was written by

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