I am establising my 2014 earnings estimate and price target
2014 EPS: $2.80
Price Target: $84
Significant industry growth and market share consolidation will drive annual top-line growth of 25% while fixed cost leverage and merger synergies will significantly improve both gross and operating margins.
eps of $2.80 per shares times 41 million shares is over $100million in net income. they would have to increase earnings by 400% a quarter......that's $25million a quarter....they've never earned over $20million a year in earnings on $155million in sales.
Funny, you include the new number of shares but neglect to account for the combined revenues of a merged Object/SSYS. With trend like growth of 20%, they should reach revenues of $425 this year and over $500 in 2014. All they need is a 20% net earnings margin to hit my target.
Now that you could have made over 25% return on capital since my bullish post on Dec. 4th, six weeks later JP Morgan comes out today with a 45 page report initiating coverage on SYSS with a price target of $86.5 based on an EPS estimate of $2.70 ( a 10 cent difference from my estimate published six weeks ago when you could have actually made money off the information).
The Wall Street Sell Side late to the game as usual...