Needham & Company Lifts Numbers on 3D Systems (DDD) on Offering, RDPG Deal

May 20, 2013 8:14 AM EDT
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Price: $17.00 +5.59%

Rating Summary:
    8 Buy, 13 Hold, 5 Sell

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    Up: 23 | Down: 34 | New: 34
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Needham & Company analyst James Ricchiuti raised estiamtes and his price target on 3D Systems (NYSE: DDD) from $42 to $52 on the recent offering on offering and the acquisition of RDPG.

Ricchiuti comments, "We are adjusting our revenue and quarterly earnings estimates for DDD to reflect the recent follow-on offering and acquisition of Rapid Product Development Group (RPDG), a San Diego-based provider of on-demand additive and traditional CNC machined and injection-molded parts. We believe the industry environment for DDD's products and services remains healthy, which was largely confirmed in quarterly earnings calls in the last week from its two publicly traded peers. With a new high-margin revenue stream from recently acquired 3D scanning/inspection/authoring software companies, Rapidform and Geomagic along with further margin expansion in DDD’s existing businesses, we are more optimistic about upside earnings potential driven by increased operating leverage in the model over the next year. Assuming continued execution on its internal growth and acquisitions strategy, we believe DDD can continue to support a premium valuation. We reiterate our Buy."

The firm is increasing 2013 revenue estimate to $478M from $458M to reflect the addition of RPDG, while EPS estimate remains $1.00 as the higher share count offsets expected accretion from RPDG. They are raising 2014 non-GAAP EPS estimate to $1.30 from $1.28 on revenues of $588M, up from $550M previously.

For an analyst ratings summary and ratings history on 3D Systems click here. For more ratings news on 3D Systems click here.

Shares of 3D Systems closed at $46.66 yesterday.

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