More Consolidation in 3-D Printing Expected as Usage Expands (SSYS) (DDD)
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3-D printers are on watch Monday following positive sentiment that the segment might see more consolidation in the coming years as use for the devices continues to grow.
Bloomberg noted that Nike (NYSE: NKE) used the technology to develop footwear for players participating in last weekend's Super Bowl. Both Hewlett-Packard and Seiko Epsn have both shown interest in gaining a foothold in the market.
One target analysts see as a potential takeover candidate is Stratasys (Nasdaq: SSYS). While bigger corporations could probably develop their own in-house system for 3-D printing, there are a lot of roadblocks, like legal and development issues, which could impair rapid implementation.
Though Stratasys is trading near a record and seeing robust valuation multiples, it still trades at a 33 percent discount to peer 3D Systems (NYSE: DDD). In addition, Stratasys has better exposure to consumer-level users with its recent purchase of MakerBot.
From revenue of $2.9 billion generated in 2013, analysts see the market rising to $6 billion by 2017 and $11 billion by 2021.
It wasn't made clear in the report whether voxeljet AG (NYSE: VJET) or ExOne (Nasdaq: XONE) might also be potential buyout candidates.
Both Stratasys and 3D Systems are negative on the session Monday.
Bloomberg noted that Nike (NYSE: NKE) used the technology to develop footwear for players participating in last weekend's Super Bowl. Both Hewlett-Packard and Seiko Epsn have both shown interest in gaining a foothold in the market.
One target analysts see as a potential takeover candidate is Stratasys (Nasdaq: SSYS). While bigger corporations could probably develop their own in-house system for 3-D printing, there are a lot of roadblocks, like legal and development issues, which could impair rapid implementation.
Though Stratasys is trading near a record and seeing robust valuation multiples, it still trades at a 33 percent discount to peer 3D Systems (NYSE: DDD). In addition, Stratasys has better exposure to consumer-level users with its recent purchase of MakerBot.
From revenue of $2.9 billion generated in 2013, analysts see the market rising to $6 billion by 2017 and $11 billion by 2021.
It wasn't made clear in the report whether voxeljet AG (NYSE: VJET) or ExOne (Nasdaq: XONE) might also be potential buyout candidates.
Both Stratasys and 3D Systems are negative on the session Monday.
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