Stratasys ( NASDAQ: SSYS ) shares rose in premarket trading on Tuesday as investment firm William Blair upgraded the 3D printer company to market perform, noting that after six years of organic revenue declines, the company looks like it has turned the corner.
Analyst Brian Drab moved the firm's rating to market perform from underperform, noting that while it's likely that sales remain "challenged" in the near-term, the company has focused on its core competency of polymer printing; has made inroads into certain industries; and its tooling and production applications business has been able to support revenue growth and stability in margins over the past 18 months.
"Stratasys has reported five consecutive quarters of organic revenue growth, after declines for the preceding six years," Drab wrote in a note to clients. adding that new products, such as Origin and SAF have gained traction.
Despite the upgrade, Drab lowered the firm's adjusted earnings per share estimates for 2023 to 25 cents per share down from 35 cents on expectations that consumables growth will be "muted" and equipment sales remain "challenged."
Stratsays ( SSYS ) shares gained more than 3% to $14.10 in premarket trading.
Earlier this month, Stratasys ( SSYS ) made a strategic investment of $10M in Med-tech startup Axial3D .
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Stratasys rises as William Blair upgrades to market perform