UPDATE: Stifel Nicolaus Starts 3D Systems (DDD) at Buy; Analyst Sees H2 Rebound

(Updated - August 29, 2014 9:14 AM EDT)

Stifel Nicolaus initiated coverage on 3D Systems (NYSE: DDD) with a Buy rating and a price target of $65. Analyst Patrick M. Newton thinks the stock is poised for a rebound in the second half of the year.

"We are initiating coverage of 3D Systems (DDD) with a Buy rating and target price of $65, based on our view that: (1) the company has meaningful company-specific growth opportunities; (2) Additive Manufacturing (AM) is a secular growth market; (3) margin is poised to expand; (4) the company has assembled the most robust Additive Manufacturing printing portfolio, while cultivating the ecosystem through software, services, and scanning investments; and (5) an intermediate period of accelerating organic growth (targeting greater than 30% y/y in 2014) is expected," said Newton.

He went on to discuss prospects for margin expansion.

"Our analysis indicates revenue is likely to accelerate exiting 2014, as several product announcements from late-2013/early-2014 are back-end loaded and have created pent-up demand. Additionally, given aggressive investments in R&D to further augment the company’s leadership position, our research indicates it will emerge from the 2014 investment phase with 2015 representing a harvest phase, which we believe is likely to result in higher profitability metrics that are not fully reflected in consensus expectations," he added.

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 $53.19 yesterday.

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