Market Overview

3-D Printing Drop Following ExOne Miss, May Be A Buying Opportunity

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3-D printing stocks are trading lower again in sympathy after ExOne (NASDAQ: XONE) reported downbeat fourth quarter results and issued a weak 2014 revenue outlook on Wednesday afternoon. Brean Capital sees the sector weakness as a sector buying opportunity and RBC had some bullish comments on the sector as a whole.

Ananda Baruah, analyst at Brean, said the ExOne miss is “not related to underlying demand characteristics for DDD, SSYS.” ExOne's miss was due mostly to a “delay in order for higher-end Sand core/mold units.”

The Brean analyst also believes ExOne's metals offering is “gaining traction,” which is positive for 3D Systems (NASDAQ: DDD).

In the RBC note, analyst Amit Daryanani said the 3-D printing market should grow at “~24% CAGR from 2013-2021 to become a $15b industry, fueled by lower average selling prices, increased ability to manufacture production-grade parts.”

Some investors are fearful that Hewlett-Packard's entry into the 3-D printing space will be negative for established players, but Daryanani disagrees.

Daryanani believes Hewlett-Packard's entry into the sector should “support 3D Systems, Stratasys near term as it validates viability of technology.” Daryanani expects “HPQ to focus on enterprise/industrial segment, leveraging its existing printing-head technology.”

Shares of ExOne, 3D Systems, and Stratasys (NASDAQ: SSYS) are down 9.5, 2.6, and 0.9 percent respectively, while shares of Hewlett-Packard are up 2.5 percent.

Latest Ratings for XONE

DateFirmActionFromTo
Nov 2014Credit SuisseMaintainsUnderperform
Nov 2014JefferiesMaintainsHold
Aug 2014Stifel NicolausInitiates Coverage onHold

View More Analyst Ratings for XONE
View the Latest Analyst Ratings

Posted-In: Amit Daryanani Ananda Baruah BreanAnalyst Color Earnings News Analyst Ratings Tech

 

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