2023-03-29 13:50:53 ET
Nano Dimension's ( NASDAQ: NNDM ) increased bid for Stratasys ( SSYS ) continues to undervalued the firm, according to a Stifel analyst.
The revised price of $19.55 a share, up from an original offer of $18, values Stratasys ( SSYS ) at a multiple of 1.63x revenue vs peer 3D Systems ( DDD ), which trades at 2.1x consensus 2023 EV/revenue, Stifel analyst Noelle C. Dilts wrote in a note on Wednesday.
The revised bid came after Stratasys ( SSYS ) last Wednesday rejected an $18 a share cash offer from Nano Dimension, saying it would not be in the best interest of shareholders. Stratasys rose 13% on Wednesday, while Nano Dimension ( NNDM ) ticked up 0.4%.
"While the revised offer is incrementally more interesting, we do not believe the transaction price of $19.55 per share fully reflects the value of Stratasys, particularly when taking a longer-term view," Dilts, who has a buy rating and $18.50 price target on SSYS, wrote.
Stifel's Dilts highlighted that that Nikon acquired SLM at 4.7x consensus 2023 revenue, and Desktop Metal acquired ExOne at 5.2x 2022 revenues.
The Stratasys ( SSYS ) rejection came after Nano Dimension ( NNDM ) has been engaged in a fight with it largest shareholder Murchinson, which is trying to get board seats and seeks the ouster of Stern. Murchinson said that it received "overwhelming support" for the removal of three directors and chairman at a vote earlier this month, a vote that Nano Dimension has called illegal.
Stifel's Dilts and an analyst at Credit Suisse earlier this month also said the original bid for Stratasys ( SSYS ) undervalued the company and was lower than other recent deals in the 3D printer space.
Nano Dimension ( NNDM ) is scheduled to report Q4 results on Thursday.
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Nano Dimension increased price for Stratasys still undervalues company - analyst