On Thursday, Loop Capital adjusted its stance on shares of Stratasys Inc. (NASDAQ:SSYS), a leader in 3D printing technology, by reducing the firm's price target. The new target has been set at $7.00, a decrease from the previous $9.00, while the Hold rating remains unchanged. This decision followed the company's earnings report for the June quarter, which was released on August 29, 2024.
Stratasys has been grappling with a challenging macroeconomic environment, leading to customer caution in capital expenditure. In response, the company has emphasized cost control and recently announced new restructuring plans. These initiatives are projected to save the company approximately $40 million annually, starting from the March quarter of fiscal year 2025.
The company is also expecting to achieve an EBITDA margin of 8% at current revenue levels. Despite the macroeconomic pressures on revenue, Stratasys reported a slight improvement in gross margin, thanks in part to a 6.3% year-over-year growth in consumables.
This growth is anticipated to persist, as Stratasys noted an unprecedented utilization of high-end machines, which may signal future purchases by customers as the macroeconomic situation improves and current machines reach full capacity.
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