Stratasys (SSYS) Stock Forecast & Price Target

Stratasys Ltd has demonstrated significant growth in its manufacturing segment, with annual revenues rising to 36% in 2024, reflecting a consistent compound annual growth rate (CAGR) of approximately 10% since 2020. Following the company's restructuring, management anticipates an increase in annualized EBITDA margin to between 7.8% and 8.5% by 2025, a notable rise from 4.5% in 2024. The positive outlook is further supported by an improvement in EBITDA, which climbed to $14.5 million, showcasing a substantial increase from both the previous quarter and year, indicating a robust operational performance driven by new product innovations and increased contributions from consumables and software services.

Stratasys Ltd has experienced a concerning trend in revenue generation, as total product revenues declined by 5% year-over-year, with system sales also modestly decreasing by 1.5%, highlighting weaknesses in its core business segments. Additionally, the company's consumables revenue has now declined for three consecutive quarters, leading to a drop in product gross margin to 53.4%, down from 55.1% in the previous quarter, indicating potential challenges in maintaining profitability. Furthermore, despite achieving revenues within the expected range for Q4, the overall decline in total revenue of 4% year-over-year raises doubts about the company's growth trajectory amid ongoing operational and market pressures.