In a report published Wednesday, Brean Capital analyst Ananda Baruah reiterated a Buy rating on 3D Systems DDD, and raised the price target from $70.00 to $77.00.
In the report, Brean Capital noted, “3D Printing peer DDD's Sep Q EPS call suggests strong demand for both commercial and consumer systems – which should bode well for SSYS – particularly the mid-to-high end commercial business, which currently accounts for ~80-90% of total SSYS revenue. Similarly to DDD, we believe the strong unit momentum will drive recurring revenue streams going forward (particularly higher margin Materials). As such, we would not be surprised to hear SSYS convey a similar strategy to DDD's – whereby the company would ramp Opex spending to accommodate the unprecedented demand; essentially sacrificing near-term EPS upside for L-T EPS power.”
3D Systems closed on Tuesday at $70.01.
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