Brean Capital Comments On 3D Systems, May See Consumer Adoption In 2015

Brean Capital commented on 3D Systems Corporation DDD Thursday after meeting with the company’s CEO CEO Avi Reichental and new head of retail Peter Theran.

According to analyst Ananda Baruah, the company’s executives believe that 2015 “is the year that the consumer sees a material
ramp in adoption” as the consumer is currently only ~5 percent of overall DDD revenue.

The belief was based on three points:

1. “Meaningful increase in partner interest – DDD feels there is a very increased desire by retailers to get into the game. And the consumer channels believe the time is now as well. DDD says these companies are ready to make the investments and that their conversations are now including a who's who of consumer, retail, distribution, and wholesale. This year DDD came into CES '15 with all their appointments booked.”

2. “DDD believes they have constructed an elegant customer experience. DDD believes they are the only folks offering plug and play in just 10 minutes. Through '14, DDD wrestled with shipping products balanced with having the appropriate user experience.”

3. “The focus in now on the apps and not on the machines. So now it is not about making the printer work, but what can I get out. DDD has also cracked the code on content generation and getting content off of Cubify.”

Brean maintained a Hold rating on the company.

3D Systems Corporation recently traded at $31.72, up 2.72 percent.