UPDATE: Brean Capital Reiterates on Stratasys as Channel Expansion Could Drive Revenue Growth

In a report published Wednesday, Brean Capital analyst Ananda Baruah reiterated a Buy rating on Stratasys Ltd. SSYS, and raised the price target from $115.00 to $135.00. In the report, Brean Capital noted, “SSYS channel expansion could also drive revenue growth, and we believe recent agreements with UPS, Microsoft, and Aurora (distributor in China) could be just the beginning of a more aggressive channel strategy. Case in point, we believe the Aurora distribution agreement in China could alone generate ~$25M-$30M in revenue in '15, or ~$0.10-$0.15 in EPS - based on Aurora's estimate that 3D printing products could account for 10-15% of Aurora revenue in China (Aurora generated ~$212M in China in '12). Additionally, we'll be listening closely to any update with regards to MakerBot's agreement to have products available in ~80 Microsoft retail locations, as well as SSYS's UPS pilot program.” Stratasys Ltd. closed on Tuesday at $118.39.