Stratasys shares jump after Needham upgrade
Stratasys Inc. shares jumped Monday after Needham & Co. upgraded the company, saying demand is improving and could drive quarterly results above expectations.
THE SPARK: Needham analyst James Ricchiuti raised his rating on Stratasys, which makes systems used by manufacturers to build prototypes, to "Buy" from "Hold" in a note to investors.
THE BIG PICTURE: Stratasys has said that an improving economy is lifting demand. Its first-quarter results topped Wall Street expectations.
THE ANALYSIS: Ricchiuti noted that despite a strong first quarter, the company's share price has slipped about 16 percent over the past three months, creating a buying opportunity.
He said Stratasys could exceed expectations again when it reports second-quarter results on July 28.
Ricchiuti predicted earnings of 17 cents per share on revenue of $29.5 million.
SHARE ACTION: Stratasys shares climbed $1.11, or 4.9 percent, to $23.74 in afternoon trading.
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