From Barron's Tech Trader Daily:
Citigroup: 3D Printing Mkt at $6B by ’18; Launches 3D Systems, Stratasys at Buy
3-D printing companies are printing up returns for investors. Shares prices were firmly in the green after Citigroup initiated coverage of 3D Systems (DDD) and Stratasys (SSYS) with Buy ratings.
In a note published today, analyst Kenneth Wong argued that the industry is “ready to push beyond prototyping” and sits on the cusp of “much broader adoption across more upstream production applications and the consumer end market.” He predicted the current $2 billion market for the technology could triple in size in the next five years.
Wong sees 3D Systems’ stock price rising to $60 in the next 12 months and sees the company earnings 98 cents a share this year. He writes:
…We believe DDD’s product line is best positioned to capitalize on all three potential market opportunities (Prototyping, Manufacturing, Consumer). We expect meaningful margin expansion from growing recurring revenue mix to drive earnings growth in excess of 30%. DDD’s numbers already reflect years of investing in low-priced consumer market giving margins a clearer upward trajectory.As for Stratasys, Wong sees the stock reaching $125 a share and expects the company to earn $1.89 a share this year....MORE