Stratasys (SSYS) Stock Forecast & Price Target

Stratasys Ltd has experienced a notable increase in revenue from manufacturing, rising to 36% of total revenues in 2024 from 34% in 2023, and demonstrating a robust compound annual growth rate (CAGR) of approximately 10% since 2020. The company has also projected significant improvements in its annualized EBITDA margins, anticipating an increase to between 7.8% and 8.5% in 2025, up from 4.5% in 2024, facilitated by recent restructuring efforts. Additionally, EBITDA growth has been significant, reaching $14.5 million, marking a substantial increase from $5.1 million in Q3 and $7.7 million in the previous year, indicating potential for stronger operating leverage driven by cost reductions and an enhanced product pipeline.

Stratasys Ltd. reported a year-over-year decline in total product revenues, which moderated to a decrease of 5%, totaling $105.1 million, as system sales experienced a modest decline of 1.5%. Additionally, the company faced a sequential decline in consumables revenue, which fell to $51.5 million in Q4 from $65.8 million in Q3, contributing to a reduction in gross margins to 53.4%. The ongoing contraction in consumables sales over three consecutive quarters raises concerns about the sustainability of revenue growth, reflecting broader challenges within the company's financial performance.