3D Systems (DDD +6.3%), Stratasys (SSYS +3.7%), and ExOne (XONE +3.8%) are all up strongly after Brean starts 3D and Stratasys at Buy, and Needham predicts 3D will deliver a strong Q2 report tomorrow morning.
Brean's Ananda Baruah predicts 3D will post 20%+ organic revenue growth going forward, and improve its gross margin by 800bps to 60% thanks mostly to mix shifts. He also likes 3D's ~1.5x PEG ratio and high short interest (could fuel a squeeze).
Baruah forecasts similar growth for Stratasys, is pleased with its ~1.4x PEG and the MakerBot acquisition, and expects better operating leverage to fuel margin expansion.
Needham's James Ricchiuti says talks with "industry players" lead it to think 3D printing demand remained strong in Q2, and that 3D Systems likely benefited from new product launches and reseller deals.
3D is near its 52-week high of $51.94, after largely treading water for two months.