Gabelli Sees Single-Dimensional Growth in 3D Systems, Downgrades to Hold

In a report published Wednesday, Gabelli & Company analyst Hendi Susanto downgraded shares of

from Buy to Hold following investor day.

3D Systems held its investor day in New York City on Tuesday. The company raised 2014 guidance to include its acquisitions and public offering. Management raised 2014 revenue guidance from $680-720 million to $695-735 million. The company maintained its EPS target of $0.73-$0.85. Management announced the completion of the Medical Modeling acquisition on April 2. 2014. The company expects to close its acquisition of Robtec by mid-July. Wohlers Associates forecasts an average annual growth of 32 percent from $3 billion in 2013 to +$20 billion in 2020. The company is bullish on healthcare opportunities, noting growth in surgery, surgical planning, and patent specific devices.

Susanto changed the recommendation due to market valuation. The analyst calculated a $50.00 per share private market value for 2014 on a 25x multiple on EV/EBITDA. Gabelli wrote, "We believe 3D Systems will be able to deliver within its revenue and earnings guidance. For 2014, we are projecting revenue of $701 million, in the mid-end of the company's guidance, and EPS of $0.77, slightly below the mid-end of the earnings guidance." Shares of 3D Systems closed at $49.28 on Thursday and are currently up 0.75 percent at $49.65