Stratasys: UBS Says Buy on ‘Focus’; DDD Started at Neutral
UBS hardware analyst Steve Milunovich this afternoon initiates coverage of 3-D printing names 3D Systems (DDD) and Stratasys (SSYS), rating the former Neutral, with a $62 price target, and the latter a Buy with a $125 price target, arguing 3D Sys has the “broadest portfolio,” but Stratasys is the preferred vendor based on being more “focused.”...MUCH MORE
3D Systems shares today closed up 8 cents at $59.15. Stratasys stock closed up $1.66, or 1.6%, at $106.09.
Writes Milunovich, “We believe 3D printing is a disruptive innovation with a bright future.”
“However, we suggest a selective approach nearer term following the recent pullback from the peak of the hype cycle.”
The field of so-called “additive manufacturing,” or “AM,” is a 30-year progression that has become hot overnight, observes Milunovich. It could become a “disruptive” technology if it overcomes shortcomings, he believes:
Some credit the awakening of 3D printing to the expiration of patents around Fused Deposition Modelling (FDM) in 2009, a technology used in most sub-$5,000 desktop devices today. Other factors contributing to the increased attention include advances in design software, new materials, growth in healthcare applications, demand for rapid prototyping, and increased use in complex, low volume manufacturing. If AM overcomes its main shortfalls—small volume size, low speed, limited materials, high printer and material costs, process integrity, and product finishing—it could become a disruptive technology, enabling new standards in structural design, time-to-market, and cost savings.Right now, the technology is still mainly for prototyping...
