Stratasys: High Risk but Still a Good Buy

by Sam Collins | March 28, 2014 1:06 am

Stratasys: High Risk but Still a Good Buy

Stratasys (SSYS[1]) — This maker of three-dimensional printers and 3D production systems for office-based rapid prototyping has only one main competitor, 3D Systems (DDD[2]). I’ve recommended both stocks several times, but on Jan. 22, Credit Suisse (CS[3]) downgraded DDD from “outperform” to “neutral” and upgraded SSYS to “outperform” from “neutral.”

The analysts said that the reason for the change was that DDD’s market price was currently at a “premium” to SSYS despite the fact that the latter had “the leadership position in 3D printing, especially after its acquisition of MakerBot.”

On March 24, a JPMorgan Chase (JPM[4]) analyst upgraded SSYS to “overweight” from “neutral” with a price objective of $125. S&P has a 12-month target of $148.

On Nov. 20[5], with the stock near at $120, I pegged its trading target as $130, and it achieved a high of $138 in early January. But since my most recent recommendation on Jan. 24[6], the stock has fizzled.

Now, however, my proprietary internal indicator, the Collins-Bollinger Reversal (CBR), has tagged SSYS as a trading buy. The stock has fallen almost 25% from its January high, and even at this price is high risk. Yet, for those who would like to have a position in the future growth of 3D printing, SSYS is likely at a price that is attractive for both traders and long-term investors. My trading objective is $118.
03 28 14 ssys 300x194 Stratasys: High Risk but Still a Good Buy
Click to Enlarge

chart key 300x84 Stratasys: High Risk but Still a Good Buy[7]

Endnotes:
  1. SSYS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SSYS
  2. DDD: http://studio-5.financialcontent.com/investplace/quote?Symbol=DDD
  3. CS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CS
  4. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  5. On Nov. 20: http://investorplace.com/2013/11/trade-day-stratasys-ssys-2/
  6. on Jan. 24: http://investorplace.com/2014/01/trade-day-stratasys-ssys-3/
  7. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2014/03/trade-day-stratasys-ssys-4/
Short URL: http://invstplc.com/1rI9w8S