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Stratasys (SSYS) Rejects Nano's Revised Takeover Offer

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Stratasys (SSYS - Free Report) once again rejected the takeover proposal of Nano Dimensions, though the Israel-based 3D printed electronics system and additive manufacturing company enhanced its offer last week. This is the third time the U.S.-based 3D printing solution provider has rejected Nano’s takeover bid.

Yesterday, Stratasys revealed that its board of directors has unanimously rejected the revised offer citing that Nano’s bid of acquiring the company at $20.05 per share in cash substantially undervalues its prospect in consideration of running as a standalone entity. Also, SSYS is uncertain about its prospect amid the ongoing power struggle within Nano. Stratasys disclosed that Nano and its CEO, Yoav Stern, are fighting in court with the Israeli company’s largest shareholder, Murchinson Ltd.

Murchinson wants Nano to remove its CEO and three other board members and appoint two new directors. Following a shareholder meeting on Mar 20, Murchinson revealed that 92% of Nano’s voting shareholders have approved the changes regarding the composition of the board.

With this, Nano, Stern and Murchinson are now involved in a litigation fight to decide who will lead the company. Therefore, Stratasys believes that uncertainty regarding the leadership and decision-making authority of Nano’s board might expose its shareholders and other stakeholders to harmful spillover effects.

Strong Prospect Makes SSYS a Takeover Target

Stratasys has been scaling newer heights across all its business segments. It has been benefiting from an increase in the demand for 3D-printed materials and its focus on product launches and strategic partnership agreements or acquisitions.

Over the past few quarters, the company has inked strategic partnerships with the likes of Schneider Electric, The Boeing Co., Ford Motor Co., Siemens, Boom Supersonic and United Launch Alliance to fuel its growth momentum. Such collaborations help introduce advanced 3D printing technologies to the aerospace and automotive industries while expanding Stratasys’ geographic reach and driving its market penetration.

Also, the company launched several innovative products, which position it well over the long term. Stratasys’ machines facilitate prototyping within a few hours, which reduces development time and upfront costs.

SSYS’ spool-based system compares favorably with UV polymer systems. Its RedEye RPM is the world's largest RP and part-building service. RedEye RPM is an online extension of the company’s BuildFDM service. This product has grown rapidly over the past several years and offered good business for Stratasys.

Last week, Stratasys received an order from Götz Maschinenbau, a German service bureau, for four of its high-speed H350 3D printers. This will turn Götz’s total fleet size to six systems, making it the leading user of Selective Absorption Fusion technology among service bureaus in the European, Middle Eastern and African markets.

In February, SSYS signed an agreement with Ricoh USA, Inc. to provide on-demand 3D-printed anatomic models for clinical settings. Earlier in the same month, it launched a first-ever monolithic, full-color 3D printed permanent denture solution, TrueDent, specifically designed for the fabrication of dental appliances, including removable dentures and temporaries. This transformative solution for the dental industry not only simplifies the denture manufacturing process but also lowers the cost, allowing for dentures and temporaries to be produced much faster, achieving incredible aesthetics.

Last year, Stratasys enhanced its dental solution portfolio with the launch of the Origin One Dental 3D printer, which provides comprehensive additive manufacturing solutions to the dental industry. In the same year, it launched a new cybersecurity solution for additive manufacturing named ProtectAM and unveiled J5 MediJet, a compact medical 3D printer that integrates multiple applications into one system, enabling the creation of intricate 3D anatomical models.

Zacks Rank & Other Stocks to Consider

Currently, Stratasys carries a Zacks Rank #2 (Buy). Shares of SSYS have increased 29.9% year to date (YTD).

Some other top-ranked stocks in the broader technology sector are Wix.com (WIX - Free Report) , Zscaler (ZS - Free Report) and Adobe (ADBE - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Wix.com’s first-quarter 2023 earnings has been revised upward to 23 cents per share from a loss of 9 cents per share 60 days ago. For 2023, earnings estimates have been revised northward by 119.1% to $1.49 per share in the past 60 days.

Wix.com's earnings beat the Zacks Consensus Estimate thrice in the preceding four quarters while missing the same on one occasion, the average surprise being 225%. Shares of WIX have risen 18.9% YTD.

The Zacks Consensus Estimate for Zscaler's third-quarter fiscal 2023 earnings has been revised a penny northward to 39 cents per share in the past 30 days. For fiscal 2023, earnings estimates have been revised northward by 6 cents to $1.52 per share in the past 30 days.

Zscaler’s earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 29.7%. Shares of ZS have declined 4.1% YTD.

The Zacks Consensus Estimate for Adobe's second-quarter fiscal 2023 earnings has been revised upward by 2 cents to $3.78 per share over the past 30 days. For fiscal 2023, earnings estimates have moved upward by 19 cents to $15.41 per share in the past 30 days.

Adobe's earnings beat the Zacks Consensus Estimate in the preceding four quarters, the average surprise being 2.6%. Shares of ADBE have soared 12.3% YTD.


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