- Needham's James Ricchiuti has raised his 3D Systems (DDD +1.6%) PT to $100 from $81, and predicts the company will "roll out new consumer/prosumer 3D printers and related products" at CES (runs from Jan. 7-10).
- He also predicts 3D's consumer products, which include the company's Cube printer line and new Sense 3D scanner (costs just $399), will become a bigger growth driver over the next two years. Sales of consumer-focused products only made up 10% of 3D's Q3 revenue, but have been growing quickly.
- At the same time, Ricchiuti joins JPMorgan's Paul Coster in cautioning 3D's R&D spend (up 95% Y/Y in Q3) will continue growing rapidly, thanks in part to its recent purchase of a Xerox R&D group.
- Nonetheless, he's unfazed by 3D's steep valuation (73x his 2014 EPS estimate of $1.27), arguing it reflects "growing investor recognition of the multiple growth drivers underpinning [3D's] business."
- Fellow 3D printer makers ExOne (XONE +2.9%) and Voxeljet (VJET +6.7%) are also moving higher in the face of a market selloff.
3D printer makers rally again; Needham hikes 3D Systems PT
Jan 2 2014, 13:10 ET