Make Stratasys Your No. 1 3D Printing Stock

by Sam Collins | January 24, 2014 1:37 am

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.” They also said, “upbeat revenue guidance and expected strong organic growth positions it well for an outperformance.”

I last recommended SSYS on Nov. 20[4], pegging its trading target as $130. It achieved a high of $138 early in January. The stock held firm Thursday with a slight gain despite a broad market sell-off. Initial support is at its 50-day moving average at $124, but stronger support is at $113.

Buy SSYS under $120 with a trading target of $135. Note that S&P has a 12-month target of $148, so longer-term investors could position themselves now for participation in the 3D printing industry.

SSYS Chart
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Chart Key[5]

  1. SSYS:
  2. DDD:
  3. CS:
  4. on Nov. 20:
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