Needham & Company Maintains a 'Buy' on 3D Systems (DDD); Acquires SLA Materials Business, Strengthening Medical Products Portfolio

Needham & Company maintains a 'Buy' on 3D Systems (NYSE: DDD) price target of $20.00.

Needham analyst says, "DDD yesterday announced the acquisition of the RenShape stereolithography (SLA) resin business of Huntsman Corp. (NYSE: HUN)(NotRated) for $41M in cash. The RenShape business consists primarily of materials used in DDD’s installed base of legacy SLA equipment and generated revenues of $7M in 2010. DDD expects the acquisition to be accretive immediately, without cost synergies...Thus, while it would appear that DDD paid up for the assets, we believe it is a highly profitable business that DDD should be able to leverage. We are not assuming any revenue contribution from the equipment business in 2012. We are increasing our revenue estimate for 2012 to $270M from $263M and have added $0.02 to our EPS estimate, bringing it to $0.84. We continue to estimate Q4 EPS at $0.19 on revenues of $63M."

For more ratings news on 3D Systems click here and for the rating history of 3D Systems click here.

Shares of 3D Systems closed at $15.34 yesterday.

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