FBR starts 3D Systems, Stratasys at Outperform; shares tick higher AH

FBR's Ajay Keriwal has started 3D Systems (DDD) and Stratasys (SSYS) at Outperform, while respectively assigning PTs of $85 and $155.

Kejriwal insists 3D and Stratasys' steep valuations can be justified by their growth prospects, and points to the historical performances of various Internet companies to argue multiple compression could be gradual.

He praises 3D's large stable of 3D printing technologies, and sees a growing mix of materials and Quickparts services revenue improving margins. Long-term, Kejriwal thinks 3D could get over 75% of its revenue from recurring streams.

As for Stratasys, Kejriwal likes the company industry-leading R&D budget (expected to total $55M-$60M in 2014), as well as MakerBot's rapid growth. He also sees room for Stratasys to expand its product line as competitor patents expire over the next couple of years.

DDD +0.9% AH. SSYS +0.4%.

Previous: 3D Systems higher after announcing new high-end printers

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Comments (1)
  • investdeep
    , contributor
    Comments (34) | Send Message
    Get in $DDD & $SSYS asap.
    3 Dec 2013, 06:50 AM Reply Like
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