3D Systems (NYSE:DDD) will be at $100 before the end of this summer. 3D Systems is one of the world's premiere 3D printing company experiencing strong growth and expected 40-50% YoY (Year over Year) growth. This article will describe why 3D Systems will continue its strong rise and also detail the numerous BUY Rating and Price Target increases over the past few days.
Additive manufacturing or 3D printing is a process of making a three-dimensional solid object of virtually any shape from a digital model. 3D printing is achieved using an additive process, where successive layers of material are laid down in different shapes. 3D printing is also considered distinct from traditional machining techniques, which mostly rely on the removal of material by methods such as cutting or drilling (subtractive processes).
3D Systems, headquartered in Rock Hill, South Carolina, is a global, integrated solutions 3D printing company specializing in 3D printers, print materials, professional and consumer custom-parts services and 3D imaging and customization software. Its products are meant to make manufacturing processes more efficient, without requiring tooling.
At least Five (5) investment banks upgraded their price targets on 3D Systems (DDD) stock this week, after the maker of 3D printers held an analyst event at an industry trade show in Frankfurt, Germany. However, this has yet to affect the price of the stock, even considering the unveiling on 12 new products to consumers and manufacturers.
3D Systems unveiled new products at the show, spanning several 3D printer platforms. The products can use a wide range of materials, including metals. It also showed off a printer targeted at the dental market.
Bobby Burleson, with Canaccord Genuity, raised his price target on 3D Systems to 85 from 65.
"We expect proliferating revenue opportunities to boost secular growth expectations for 3D Systems and drive multiple expansion for the stock," Burleson said in a research report. "Revenue growth is being driven by strong organic demand, a continuing expansion of new products, looming consumables growth acceleration, and an expanding consumer channel."
Julian Mitchell, with Credit Suisse, reiterated a buy rating on 3D Systems. "The expansion into metals suggests new market share to be captured," he wrote in a note. "We think metals market currently remains small but is fast growing." 3D Systems price target raised to $76 from $65 at Credit Suisse.
3D Systems price target raised to $86 from $77 at Brean Capital
"Brean Capital raised its price target on 3D Systems citing the fundamental backdrop including an acceleration of organic growth, higher margin materials revenue, and a high short interest. Shares are Buy rated."
3D Systems price target raised to $90 from $68 at Maxim
Maxim raised its price target for 3D Systems to $90 after the company announced new products at the EuroMold in Frankfurt. The firm says 3D's expanding ecosystem of printers, scanners and print materials offers improvements on key metrics. Maxim keeps a Buy rating on the stock.
3D Systems price target raised to $82 from $62 at Needham.
Based on the increase in product line, massive growth through acquisitions and organic growth and R&D spending and rather conservative estimates of Growth buy the company 3D Systems can expect a short term pop and more longer term growth. Moreover, when the large short interest (over 20%) begins to cover when the stock rises with all Investment Bank upgrades they will surely begin to cover and feel the pain of another round of short squeezes.