This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why Stratasys Is the 'Behemoth' in 3-D Printing

NEW YORK (TheStreet) -- The 3-D printing space is rapidly changing industries, as more companies begin to realize the benefits of making their own parts, cutting costs, and expanding into new fields. Stratasys (SSYS - Get Report) is the "behemoth" in the 3-d printing industry and it's only poised to get bigger, according to one analyst.

Deutsche Bank analyst Sherri Scribner initiated coverage on Stratasys with a "buy" rating and a $140 price target, noting that Stratasys' leading technology is helping the company take a lead over its competitors, including 3-D Systems (DDD - Get Report) and ExOne (XONE - Get Report). "We expect Stratasys to continue to benefit from the growth in the nascent additive manufacturing market, driven by is leading position in FDM (fused deposition modeling, one of the most cost-effective technologies available today," Scribner wrote in a note.

She noted that Stratasys, which recently bought Object and Makerbot earlier this year, has the highest gross margins in the industry, and "has room to return operating margins back to historical levels as it improves services margins."

Shares of Stratasys were higher in premarket trading on Tuesday, up 0.71% to $118.50.

SSYS ChartSSYS data by YCharts

Though the Makerbot acquisition put Stratasys more in line with consumers, as the industry just starts to come into people's homes, Scribner noted the Object merger may help strengthen Stratasys' lead in other areas. "With the recent merger with Objet, Stratasys has cemented its lead as the largest shipper of industrial 3-D printing units in the world," she wrote in the report.

The additive manufacturing market has been growing like a weed over the past 20 years, expanding at a compound annual growth rate (CAGR) of 18%. But it's only been the past few years when the industry has really started to take off as the media and investors begin to take notice. Over the past three years, revenue from 3-D printing has more than doubled to $2.2 billion, and it's only poised to continue to grow, Scribner noted.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
DDD $27.09 0.00%
SSYS $53.66 0.00%
XONE $13.55 0.00%
AAPL $126.37 0.00%
FB $83.20 0.00%

Markets

DOW 17,976.31 +263.65 1.49%
S&P 500 2,086.24 +25.22 1.22%
NASDAQ 4,947.4410 +56.2220 1.15%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs