Bank of America Comments On 3D Systems And Statasys After Euromold

Bank of America issued company updates on 3D Systems Corporation DDD and Stratasys Ltd. SSYS after attending the Euromold fair.

Analysts led by Wamsi Mohan commented that for Stratasys, he expected near-term “organic revenue growth of 25+ percent (driven by rapid prototyping, manufacturing of jigs, fixtures, direct digital manufacturing and strong growth at consumer) and continued investments to drive growth.

“Although there is significant leverage in the model, we do not expect significant margin improvement in the near term given the focus on investments to support growth, channel expansion, and increased investments (Capex).”

Stratasys was rated Buy with a $140 price target. The F2015 revenue and EPS estimates remained at $1.01 billion and $2.77.

Mohan was less enthusiastic about 3D Systems and maintained an Underperform rating and $40 price target due to “the likely peaking of organic revenue growth and risks associated with the long term margin profile as recurring revenues will take much longer to build up relative to our original expectations.”

Mohan added, “the focus [for DDD] is on integrating various acquired assets and driving improved speed and larger build envelope with the printers and trying to build up a coherent story around the assets the company has been steadily acquiring. We expect to see additional low end products at CES 2015 in January.”

The DDD F2015 revenue and EPS estimates remained at $862 million and $0.96.

3D Systems Corporation closed at $35.28 Friday, down 1.92 percent.

Stratasys Ltd. closed at $101.97 Friday, down 0.09 percent.