3D Printing Stocks Rally Following New Buy Ratings At Citi
Wong initiated coverage on both stocks with Buy ratings. He set a $60 price target on shares of 3D and a $125 price target on shares of Stratasys.
The Citi analyst believes the 3D-printing market will more than triple over the next five years, eventually boasting a market value of over $6 billion. Wong said the printing and additive manufacturing market is nearing a point where much wider adoption will hit the consumer end market and affect upstream production applications.
While Wong issued Buy ratings for both stocks, he said he prefers shares of 3D Systems to Stratasys. He cited more clarity on how 3D will continue to expand margins and a more favorable addressable market over the longer term.
With shares of 3D Systems last trading around $52.88, Wong's new target implies potential upside of about 13 percent. Stratasys shares are trading around $112 Monday morning; this implies potential upside of about 11.5 percent from where SSYS is currently trading.
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