Canaccord Cuts Stratasys Price Target As Shares Fall 30%

Canaccord cut its price target from $120 to $100 on Stratasys, Ltd. (NASDAQ: SSYS) and maintained a Buy rating after the company lowered its guidance on Monday.

For the fourth quarter of 2014, the company guided for revenue between $214.75 million and $216.75 million with EPS in the range of $0.45 to $0.51. Canaccord had estimated $225.9 million in revenue and EPS of $0.73.

Analyst Bobby Burleson seemed surpirsed by the lowered guidance and had not expected "a revenue shortfall given positive reseller feedback on core business in North America for industrial machines.”

Related Link: Brean Capital Downgrades Stratasys As Shares Plunge 27%

Burleson commented that “anemic” growth year-over-year for MakerBot and softness in the European market were part of the decline in expected revenue.

The new $100 price target was based on 5x forward price-to-sales, which Burleson thought was “an achievable multiple” based on management’s estimates of top line growth at 27 percent in 2015.

Shares of Stratasys were pummeled after guiding lower and recently traded at $53.50, down 33 percent.