Shares of
3D Systems Corporation DDD saw a mid-day pop Tuesday morning following some bullish comments from Piper Jaffray's Troy Jensen.
With about four hours left in the trading session, 3D Systems shares are trading up two percent to around $48.82.
"Based on conversations with industry contacts, we believe 3D Systems landed a large, unexpected deal in Q3. We believe the Bluebird deal was from General Motors and could be in the range of roughly $6-8 million dollars," according to Jensen.
The Piper analyst believes "this deal was likely not in 3D Systems pipeline," and could offer "a boost to the company's system revenues/backlog in the September quarter."
Jensen maintains a Neutral rating and $50 price target on shares of 3D Systems.
3D Systems shares had been trading in negative territory ahead of the release of Jensen's research note. Likely affecting the stock earlier in Tuesday's session was a Morgan Stanley note pointing at recent investor feedback highlighting margin concern.
"Most investors we spoke with are concerned about long-term margin pressure due to increasing competition including potential OEM entrants, high cost machines and materials, and the need to invest in R&D and sales and marketing," the firm's Scott Schmitz said. The Morgan Stanley analyst, however, noted he disagrees with this sentiment. Schmitz instead noted similar consensus models to second-half seasonality versus last year even amid new product unveilings, "increasing end demand, and expanding distribution," and an expected acceleration in organic growth.
Schmitz maintains a Cautious rating on the 3D Printing sector as a whole.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
