Recently, Nano Dimension (NASDAQ:NNDM) announced plans to buy Stratasys (NASDAQ:SSYS). The move would have given Nano Dimension a little extra room to run in the 3D printing space, reports note. However, both analysts and investors are up in arms over the deal, as NNDM stock fell over 10% in today’s trading session.
Nano Dimension planned to offer $18 a share for Stratasys, which would have worked out to $1.1 billion. However, analysts promptly weighed in, suggesting that the price is significantly lower than it should be. Stifel’s analyst, Noelle C. Dilts, noted that $18 a share wasn’t exactly a good deal. After all, Dilts had an $18.50 price target on Stratasys stock today.
Dilts wasn’t alone here, either; Shannon Cross with Credit Suisse said much the same thing: $18 a share undervalues Stratasys, despite the fact that Stratasys closed today’s trading at $15.28. Even some of Nano Dimension’s insiders are urging Nano Dimension to back off. Anson Funds—which owns 5.1% of Nano Dimension—not only wants Nano Dimension out of the Stratasys deal but also wants management to actually start listening to its investors. Anson Funds said it was a “concern” how Nano Dimension is using most of its cash reserves to chase after Stratasys.
All this attention has sent Stratasys climbing even as Nano Dimension falls. Stratasys stock is currently considered a Strong Buy by analyst consensus. Further, thanks to an average price target of $17.67, it boasts an upside potential of 15.34%.
