Stratasys Sales Up...3D Systems Down, New Data Shows

• In 2015, shares of Stratasys, Ltd. SSYS have declined 63 percent, while 3D Systems Corporation DDD dipped 60 percent.
• Troy Jensen at Piper Jaffray said that the 3D printing industry is "starting to show signs of reacceleration," with the outlook for Stratasys being more positive than that for 3D Systems.
• Jensen based the firm's outlook on the results of a 3D printing survey that showed the results for Stratasys was balanced, while 3D Systems demand "remained poor."

In the third quarter, 3D printing demand was "once again discouraging," Piper Jaffray's Troy Jensen argued in a new research note. However, Jensen said he believes the 3D printing industry is in the midst of a recovery that may take one or two more quarters to materialize. In 2016, that should lead the industry to see "healthy" growth rates.

Related to specific names, Jensen was bullish on the outlook for Stratasys. He said that the channel checks and survey suggested that Stratasys could beat earnings expectations for the first time this year. Further, the product growth rates "should begin to accelerate over the next 1-2 years."

3D Systems' demand, however, "appears to have remained challenged." Critically, the survey pointed to "unhappy channel partners and system quality issues." Though it has made strides, the company has a "long way to go" before those issues are fully resolved.