Printing Profits
Stratasys is a world leader in 3D printing. They supply additive manufacturing solutions for the creation of parts used in the processes of designing and manufacturing products and for the direct manufacture of end parts. Its operational facilities are located in Brazil, Germany, Hong Kong, Israel, Japan and the United States.
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SSYS has a strong balance sheet and is at the low end of its valuation range.
We like the smooth earnings progression and we believe that 3D printing is a game-changer for the industrial world. This stock does not pay a dividend; therefore we propose a half position.
Purple Chips 12 -18 month target: $85.00
LOW VALUATION IN STRATASYS AT $55.10 (SSYS-US) HALF POSITION
PURPLE CHIPS TARGET: $85.00 POSITION SIZE: HALF (2.5%) P/E: 27.5X DIV: NIL MKT CAP: $2.8B Cash:$400M RETURN ON CAPITAL: -5.7% EARNINGS YIELD: -1.7% 5 YR EPS Growth rate*:30% P/E/G Ratio: 0.91X EPS: $2.01 2016 EST.: $2.56 2017 EST.: $3.22
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
