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3D Systems, Stratasys pare losses as analysts defend; Tilson gloats

Feb. 05, 2014 2:12 PM ET3D Systems Corporation (DDD) StockDDD, SSYSBy: Eric Jhonsa, SA News Editor5 Comments
  • Analysts are rushing to defend 3D Systems (DDD -16.2%) in response to the company's 2013 EPS warning and mixed 2014 guidance. Shares remain down sharply, but are well above their morning lows. The same goes for rival Stratasys (SSYS -6.3%).
  • While considering 3D's EPS guidance to be disappointing Deutsche (Buy) notes revenue growth and bookings "remain solid," and views the EPS weakness as evidence of management's willingness to "prioritize top-line growth over near-term profitability." The firm also expects the 24 products 3D has launched over the last 1 1/2 months (previous) to boost 2014 growth.
  • Jefferies (Buy) observes 3D's professional sales are faring better than its consumer sales, and thinks the warning simply drives home its belief that commercial prototyping, rather than consumer, is the company's main near-term growth opportunity.
  • BofA/Merrill is defending both 3D and Stratasys: The firm thinks the former's revenue growth trajectory is intact, and that the latter's guidance already accounts for steep investments.
  • Meanwhile, the bearish Whitney Tilson says he added to his 3D Systems short position today, and thinks the warning "could well be the beginning of the end for the 3D printing bubble."
  • Tilson: "3D printing is real, but the stock valuations aren’t ... Coming into today, DDD was trading at 17x revenues. So now it’s trading at 14x. So what?"

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