UPDATE: JP Morgan Upgrades 3D Systems to Neutral on Valuation
JP Morgan raised its rating on 3D Systems (NYSE: DDD) from Underweight to Neutral and increased its price target from $39 to $50.
JP Morgan noted, "We believe the 3D printing market will grow at a ~20% CAGR through 2015, and we are raising DDD estimates accordingly. With growth of this magnitude so scarce in the technology hardware space, the leading pure-play 3D printing stocks are understandably trading at premium P/E multiples. Recognizing that most momentum and growth investors appear to be focused on PEG, we are now doing the same as our primary valuation approach. We believe DDD is somewhat undervalued, using an assigned multiple of 27x CY14E PF EPS, which represents a PEG of 1.0x to expected growth in PF net income."
3D Systems closed at $47.08 on Tuesday.
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