UPDATE: Stifel Initiates Coverage On ExOne, See Shares Fairly Valued At $29
Shares of ExOne (NASDAQ: XONE) are trading up Friday morning after Stifel announced new coverage on the 3D printer manufacturer.
Analyst Patrick Newton issued a Hold rating without stating a price target, though the research firm did note that $29 per share is in line with its Discounted Cash Flow model.
Regarding ExOne's positives, Newton said he sees significant upside potential for revenue growth which should also aid margin growth, an increasing number of material offering, exposure to a fast growing industry, growth in ExOne’s service business and the beginnings of an accelerating scale of orders from "1-2 per customer to 10 plus."
Stifel’s research shows the 3D printing market is roughly valued around $3.1 billion with a 20 percent year over year annual growth rate for the foreseeable future. One of the fastest growing areas of 3D printing is in the industrial market where ExOne has a focused portfolio in binder jetting (aka Inkjet Powder Printing) alongside ties to casting and enabling the creation of finished metal parts.
Stifel states a level of discomfort in ExOne’s management expectation of 40-50 percent revenue growth forecasts as recent results misses expectation. ExOne stands to benefit the most from its smaller scale and industrial focus but the company’s inability to sustainably meet its own revenue growth outlook could generate some difficulty for ExOne to deliver on its expectations.
Stifel EPS Forecasts
|Fiscal Year Dec||F13A||F14E||F15E||3Q-2014E||4Q-2014E|
|Current EPS (Net)||$(0.52)||$(0.76)||$0.01||$(0.12)||$0.07|
Shares of ExOne are trading up roughly 0.47 percent mid-morning on Friday to $30.02.
Latest Ratings for XONE
|Jan 2015||Credit Suisse||Assumes||Underperform|
|Nov 2014||Credit Suisse||Maintains||Underperform|
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