JPMorgan's Paul Coster has slightly raised his 3D Systems (DDD +2.2%) PT in the wake of the company's $32.5M acquisition of Xerox's solid ink R&D unit. He has raised his 2014 revenue forecast to $628M from $622M, but (citing growing R&D spend) has lowered his EPS forecast to $1.19 from $1.28.
Like Piper's Troy Jensen, Coster was impressed by 3D's product lineup at the Euromold trade show, which soothed concerns the company was "losing ground," particularly in the market for photopolymer jet printers; Stratasys (SSYS +2.7%) also competes here.
At the same time, he's skeptical about 3D's ability to hit its gross and operating margin targets. 3D, which had a 51% gross margin and 25% op. margin in 2012 on revenue of $354M, is aiming to have a 60% GM and 41% op. margin when it reaches a $500M/year run rate.
Stratasys has joined 3D in rallying, and so has ExOne (XONE +1.5%).