3D Systems Stock Is a Winner, But How Much Higher Can It Go?

It’s truthful to say buyers had been fairly happy when on Thursday, 3D Techniques (DDD) launched 4Q20 preliminary outcomes alongside some information of newest developments.

Shares greater than doubled after the 3D printer maker mentioned it expects This fall income to return in between $170 million and $176 million, a long way above the $140 million analysts had been estimating.

Non-gaap working revenue is anticipated to meaningfully enhance, too. The corporate expects it will likely be within the vary of $11 million to $19 million in comparison with the $5.6 million earned in the identical interval final yr.

3D Techniques additionally mentioned it has concluded the sale of non-core software program companies Cimatron and GibbsCAM for roughly $64 million, of which $21 million was used to pay down debt.

J.P. Morgan analyst Paul Coster calls the outcomes “very encouraging.” The corporate has now delivered two consecutive quarters of 20% sequential progress, and Coster factors on the market could possibly be “pent-up demand forward regarding elective surgical procedure and dental procedures, and industrial exercise.”

Nevertheless, whereas the uptick could possibly be put down as merely a bounce again from the pandemic pushed woes in final yr’s first half, Coster sees a extra particular motive for the rebound.

CEO Jeffrey Graves took over the reins in Might, and the analyst notes how shortly the brand new appointment has made an influence.

“Dr. Graves has accomplished a terrific job as new CEO,” Coster mentioned. “He has right-sized, restructured, divested and overseen progress in very brief order. We expect he’s taking a really pragmatic view of the function of 3D know-how in manufacturing that ought to imply the corporate avoids the speculative and conceptual detours which have plagued different firms on this sector over the previous couple of years.”

Because of this, Coster upgraded DDD’s score from Underweight (i.e. Promote) to Impartial (i.e. Maintain), whereas boosting his worth goal to $14. Nevertheless, following Thursday’s gravity defying beneficial properties, the determine now suggests shares will drop ~42%. (To observe Coster’s observe file, click here)

All in all, the market’s present view on DDD is a blended bag. The inventory has a Maintain analyst consensus score primarily based on 2 current Buys and three Holds. In the meantime, the $17.50 worth goal signifies there can be a pointy 30% pullback over the following 12 months. That mentioned, it will likely be fascinating to see, if following the most recent optimistic developments, different analysts alter their DDD fashions shortly. (See DDD stock analysis on TipRanks)

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Disclaimer: The opinions expressed on this article are solely these of the featured analyst. The content material is meant for use for informational functions solely. It is extremely vital to do your personal evaluation earlier than making any funding.

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