Needham & Company reiterates a 'Buy' on 3D Systems (DDD); Raising 2012 Estimate To Reflect Z Corp Acquisition

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

Needham analyst says, "DDD shares rose 7% yesterday in a strong tape after the company completed the acquisition of Z Corp., a leading manufacturer of affordable desktop and professional 3D printers, and sister company Vidar, which supplies film scanners to the medical market. The two companies generated combined revenue of $58M for the 12 months ended June 2011. DDD paid $135.5M to acquire the companies from Contex Group, a subsidiary of Ratos AB, a Swedish-based private equity firm. Following the transaction, we are increasing our 2012 revenue estimate by 22%. The acquisition is expected to be accretive on a non-GAAP basis in Q1. Assuming a smooth integration of the acquisitions of Z Corp., Vidar and the 3D printer materials business of Huntsman, we believe DDD can generate non-GAAP EPS of $0.90 in 2012." (FY12 EPS estimate from $0.84 to $0.90 and revenues from $269.6M to $328.6M)

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 $15.36 yesterday.

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