Stratasys Down -2: Southcoast Cuts '98 Net View To 67c/Shr
MINNEAPOLIS (Dow Jones)--Shares of Stratasys Inc. (SSYS) dropped
sharply following a rating downgrade and earnings estimate reduction from
Southcoast Capital Corp.
Southcoast analyst James McIlree lowered his rating on Stratasys to long-term
hold from long-term buy, according to a contact at the firm. He also cut his
earnings estimates to 33 cents a share from 70 cents for 1997 and to 67 cents
a share from $1.10 for 1998.
McIlree maintained his short-term rating at hold.
In a research note, the analyst said Stratasys has seen continued weakness in
demand for its Fused Deposition Modeling, or FDM-1650, and is unable to
offset the weakness with revenues from the higher-priced FDM-2000 and
FDM-8000.
Stratasys makes rapid prototyping systems for automotive, aerospace,
industrial, electronic, medical and consumer product original equipment
manufacturers.
A company spokesman said Southcoast's downgrade is probably behind the
stock's fall since there's no other news pending that could be pushing down the
price.
Stratasys shares were recently trading at 14 1/2, down 1 7/16, or 9%, on
volume of 312,600 shares, compared with average daily volume of 173,900.
Earlier they traded to a new 52-week low of 13 3/4; the previous low of 13
7/8 was set October 31.
Late last month, the Eden Prairie, Minn., company said its second-quarter
revenue would fall below analysts' expectations due to manufacturing
constraints for its FDM-8000 product line because of a stronger dollar
compared with European currencies and delays in closing some domestic
sales. |
