Pre-surgical planning, metal printing (aided by Phenix Systems), and Google's Project Ara (modular smartphones) all serve as growth opportunities for 3D Systems (DDD +0.7%), writes UBS' Steve Milunovich, upping his PT by $4 to $51.
Milunovich, who launched 3D at Neutral and Stratasys (SSYS +1.8%) at Buy on April 1, notes 3D (just raised $300M) suggested "its M&A strategy focuses on what it calls 'the 3Ms of 3D printing:' medical, materials, and metals."
On the other hand, he thinks 3D downplayed its efforts in desktop printing, where Stratasys' MakerBot unit has a leading position, and believes low consumer traction could be a risk.
Pac Crest (Outperform) likes 3D's outlook for 30%+ revenue growth through 2015, but cautions H-P's pending market entry is a potential concern. 3D's 2015 revenue growth consensus is currently at 29.6% (could rise following yesterday's guidance hike).
Positive analyst dispatches are outweighing a downgrade to Hold from Gabelli's Hendi Susanto, who values shares at $50 (25x 2014E EV/EBITDA).
Investor day slides (.pdf)