NEW YORK (TheStreet) -- Shares of Stratasys Ltd (SSYS - Get Report) are up 1.55% to $92.81 today.
The 3D printer company is benefiting from residual positive sentiment from its competitor, 3D Systems (DDD), which had its price target raised to $51.00 from $47.00 at UBS (UBS) this morning.
The firm also has a "neutral" rating on 3D Systems.
UBS currently has a "buy" rating on Stratasys.
TheStreet Ratings team rates STRATASYS LTD as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate STRATASYS LTD (SSYS) a HOLD. The primary factors that have impacted our rating are mixed; some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- SSYS's very impressive revenue growth greatly exceeded the industry average of 4.3%. Since the same quarter one year prior, revenues leaped by 55.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SSYS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintans a quick ratio of 4.54, which clearly demonstrates the ability to cover short-term cash needs.
- The gross profit margin for STRATASYS LTD is rather high; currently it is at 66.99%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, SSYS's net profit margin of 2.70% significantly trails the industry average.
- STRATASYS LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STRATASYS LTD swung to a loss, reporting -$0.70 versus $0.43 in the prior year. This year, the market expects an improvement in earnings ($2.20 versus -$0.70).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Computers & Peripherals industry and the overall market, STRATASYS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SSYS Ratings Report