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UBS Boosts PT on 3D Systems (DDD) to $51; Sees Lack of Traction with Consumer as Risk

June 11, 2014 11:41 AM EDT
Get Alerts DDD Hot Sheet
Price: $4.34 --0%

Rating Summary:
    8 Buy, 18 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 8 | Down: 5 | New: 36
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UBS affirms its Buy rating on 3D Systems (NYSE: DDD) and raises its price target from $47 up to $51 following the company's investor meeting. UBS has 3D Systems at Neutral.

Analyst Steven Milunovich noted, We think pre-surgical planning is a growth opportunity where 3D is uniquely positioned. We also see 3D's capabilities in metals as a strategic asset in developing use case growth in the vertical. Project Ara appears to be on track, with the company developing a continuous production-grade hybrid 3DP system. In our view, there was less emphasis on desktop printing products with management noting it as an upside opportunity. We continue to view traction in consumer as a risk to expectations.

Following its recent $300mn equity add-on, 3D indicates its M&A strategy focuses on what it calls "the 3Ms of 3D printing:" medical, materials, and metals. Medical appears to be one the fastest growing verticals while demand for direct metal solutions, partially related to medical, continues to outpace capacity. We like that the company is looking to invest where the market heat is fastest developing, possibly making recent capital raises less dilutive, Milunovich said.

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

3D Systems closed at $49.28 yesterday.



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