Stratasys (SSYS) Stock Forecast & Price Target

Stratasys Ltd has demonstrated a robust growth trajectory in the manufacturing segment, with revenues increasing to 36% of total revenues in 2024, up from 34% in 2023, and achieving a compound annual growth rate (CAGR) of approximately 10% since 2020. The company's recent restructuring is expected to enhance its annualized EBITDA margin, projecting an increase to between 7.8% and 8.5% in 2025, compared to 4.5% in 2024, which indicates improving operational efficiency. Additionally, significant year-over-year growth in EBITDA, rising to $14.5 million from $5.1 million in the previous quarter, positions Stratasys favorably for increased demand, particularly in the context of a potential recovery in the industrial sector.

Stratasys Ltd. reported a decline in total product revenues, showing a 5% year-over-year decrease, with Q4 revenues also falling by 4% year-over-year to $150.4 million, despite being within the preannounced guidance ranges. The company experienced lower consumables revenue, contributing to a drop in the product gross margin to 53.4%, down from 55.1% in the previous quarter. Additionally, while system sales increased sequentially, they declined by as much as 13% year-over-year, indicating ongoing challenges in sustaining consistent revenue growth.