2023-03-10 08:53:09 ET
The valuation for Nano Dimension's ( NASDAQ: NNDM ) $18 a share, or $1.1 billion bid, for Stratasys ( NASDAQ: SSYS ) isn't compelling and is lower than other recent deals in the 3D printer space, according to a Stifel analyst.
"We do not find the valuation particularly compelling, as we believe SSYS should see solid growth, margin, and multiple compression over the next three+ years," Stifel analyst Noelle C. Dilts, who has a buy rating and $18.50 price target on Stratasys, wrote in a note on Friday.
The analysis comes as Stratasys ( SSYS ) shares soared 13% in premarket trading on Friday after Nano Dimension ( NNDM ) disclosed the non-binding offer for the company on Thursday. Nano Dimension ( NNDM ) fell 7.4%.
Stifel's Dilts highlighted that that Nikon acquired SLM at 5.0x NTM revenue, and Desktop Metal acquired ExOne at 5.2x forward revenues, while the Nano Dimension ( NNDM ) offer values the SSYS at 1.46x the midpoint of SSYS's 2023 revenue guidance.
"We do not believe the transaction price of $18.00 per share fully reflects the value of Stratasys, particularly when taking a longer-term view," Dilts added.
Stratasys ( SSYS ) confirmed that it received the unsolicited bid and said its board will carefully review the proposal, according to a statement late Thursday.
The offer comes as Nano Dimensions ( NNDM ) has been engaged in a fight with it largest shareholder Murchinson, which is trying to get board seats and seeks the ouster of the company's Chairman Yoav Stern. Earlier Thursday influential proxy service ISS recommended that shareholders vote to support all of Murchinson's board nominees and removal of chairman Yoav Stern. The vote is scheduled for March 20.
Nano Dimension ( NNDM ) has a market cap of ~$800 million, while Stratasys ( SSYS ) is valued at ~$945 million.
In July Stratasys ( SSYS ) adopted a limited shareholder rights plan or "poison pill" shortly after Nano Dimension ( NNDM ) disclosed that it had a acquired a 12% stake in SSYS. The poison pill would go into effect when a person or group a cquired 15% or more of the company's stock , with the pill set to expire July 24.
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Nano Dimension bid for Stratasys doesn't have compelling valuation - analyst