In September of last year, international financial services group, Credit Suisse published its predictions about 3D printing stocks. At that time the organisation listed 3D Systems (DDD) with an Outperform rating, Stratasys (SSYS) as Neutral and ExOne (XONE) was thought to Underperform. Just as the market fluctuates, so do the beliefs of financial analysts and Credit Suisse has since revised its ratings of the 3D printing sector.
The firm’s Julian Mitchell upgraded Stratasys to an Outperform rating, targeting a stock price of $144, with Mitchell’s report saying that
The company believe the Stratasys 2014 sales guidance of $660 to $680 million is potentially conservative in light of likely MakerBot outgrowth in the second half of 2014.
Like a Fiat at a red light, 3D Systems was shifted to neutral and the price target was set at $90 per share. Thus
3D Systems is likely to issue guidance for 2014 in the next month; Credit Suisse believe there is risk that earnings guidance disappoints consensus expectations given heightened R&D costs from the Xerox transaction and incremental sales and marketing expense.
ExOne, however, is still listed as overvalued. There was no mention of other publicly traded stocks in the 3D printing sector, such as voxeljet, Arcam, and Organovo.
Also in the firm’s report is a revised estimate of the overall 3D printing market. Mitchell targets market growth to $800 million in revenue by 2016, as opposed to their previous estimate of $175 million.