In September of last year, international financial services group, Credit Suisse had come out with its predictions about 3D printing stocks. They previously 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,
We 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, when NPIs roll out. Its MakerBot is strongly positioned in both the pro-sumer and consumer markets with premium brand, print quality, ease of use, and high sales exposure (21%).
Like a Fiat at a red light, 3D Systems was shifted to neutral and the price target was set at $90 per share:
3D Systems is likely to issue guidance for 2014 in the next month; we 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. As far as I know, there was no mention of other publicly traded stocks in the 3D printing sector, such as voxeljet (VJET), Arcam (AMAVF), and Organovo (ONVO).
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. That’s a pretty big difference, so, I don’t know how much I’d value their take on things. Then again, I don’t know much about analyzing stocks and they’re a huge multinational with an arsenal of resources. That may be the reason that, at the time of this writing, 3D Systems dropped 4.02% and Stratasys went up .09%.
I wonder though, did Credit Suisse catch the news about the candy and ceramic printers from 3DS?
Source: 24/7 Wall St.
Feature Image: Sector67 on Thingiverse
