Stratasys stock has been down 69 percent this year, but Oppenheimer analyst Holden Lewis earlier this month reiterated his buy “outperform” rating after recent visits with company management and a view of the company at the November Formnext industry trade show in Germany.

Stratasys, which has dual headquarters in Eden Prairie and Israel, makes 3-D printing equipment. Lewis explains that part of the industry’s overall struggle is that there is a “gap between buyers’ expectations of 3-D printing’s capabilities and what it can actually do.”.

Despite that gap, Lewis came away from the conference and meetings with management convinced that with better execution, 2016 will be a better year than 2015.

The headline to Lewis’ report is that he has a conservative view short-term but is optimistic long-term.

“The good news/bad news is that the solution to closing the gap is within the control of original equipment manufacturers,” Lewis wrote. “Unfortunately, that is not something that occurs in one or two quarters.”

 

Energy struggles filter down to Pentair

Pentair PLC provides filters, pumps and valves to the municipal, commercial, industrial, residential and energy markets. As such, it has been exposed to the struggles in the energy industry, which has been a drag on the industrial sector in general and Pentair in particular.

On Dec. 17, Golden Valley-based Pentair provided initial earnings per share guidance for 2016 that was slightly lower than the consensus estimates from analysts.

Wedbush analyst James Kim reiterated his “neutral” rating on Pentair after the guidance announcement, believing that the energy and industrial markets will continue to struggle. “While valuation is becoming more compelling, we believe the shares will be challenged until headwinds dissipate,” Kim wrote.

 

Polaris guides lower and cuts shipments

Polaris Industries on Dec. 17 cut its guidance for 2016 sales and earnings per share. The company had expected sales to increase 10 to 11 percent and are now expecting 4 to 5 percent growth. It also moved from an 11 to 12 percent EPS growth rate to just 1 to 2 percent. Weaker than expected demand for off road vehicles and snowmobiles lead Polaris to cut shipments to dealers to help control inventory.

Wedbush security analyst James Hardiman wrote: “We believe this is the right step to take for the sake of dealers, the brand and the long-term health of the company.”