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.
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