Why Stratasys Ltd. Shares Could Rebound to $140

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of Stratasys  gained 1% in premarket trading Friday after Jefferies assumed coverage on the 3-D printing technologist with a buy rating.

So what: Along with the bullish call, analyst Jason North planted a price target of $140 on the stock, representing about 35% worth of upside to yesterday's close. So while momentum traders might be turned off by Stratasys' year-to-date pullback, North's call could reflect a sense on Wall Street that its growth prospects are becoming too cheap to pass up.

Now what: Stratasys replaces 3D Systems as Jefferies' "Top Pick" in the sector. "Stratasys is the most leveraged toward prototyping and prosumer/education," said North. "Rather than compete in the low end of the consumer market, Stratasys has actually raised MakerBot prices and included additional functionality as it targets the prosumer/education market. SSYS is putting a lot of SSYS IP into the new MakerBot machines (e.g., the architecture of the MakerBot Z18 (to be launched soon) is designed to include two heads and dual materials so it will possibly be upgradeable)." When you couple that competitive edge with Stratasys' rock-solid balance sheet and still-beaten down stock price, it's tough to disagree with Jefferies' bullishness. 

Leaked: Apple's next smart device (warning, it may shock you)
Apple recently recruited a secret-development "dream team" to guarantee its newest smart device was kept hidden from the public for as long as possible. But the secret is out, and some early viewers are claiming its everyday impact could trump the iPod, iPhone, and the iPad. In fact, ABI Research predicts 485 million of this type of device will be sold per year. But one small company makes Apple's gadget possible. And its stock price has nearly unlimited room to run for early in-the-know investors. To be one of them, and see Apple's newest smart gizmo, just click here!

The article Why Stratasys Ltd. Shares Could Rebound to $140 originally appeared on Fool.com.

Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, Apple, and Stratasys. The Motley Fool owns shares of 3D Systems, Apple, and Stratasys. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story