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The entry of HP Inc. ( HPQ ) into the 3D printer market is seen as creating problems for 3D Systems ( DDD ) and Stratasys ( SSYS ), causing an analyst to issue a warning about the two market leaders. While 3D Systems and Stratasys are the two largest providers of 3D printers, HP (formerly Hewlett-Packard before its split) will gain market share over time, wrote UBS analyst Steven Milunovich in a research note. He reiterated a sell rating on Stratasys with a price target of 19. UBS also has a sell rating on 3D Systems and a price target of 9. Stratasys stock was up almost 3%, near 26, during afternoon trading in the stock market today . 3D Systems was near 15, down a fraction. The stocks of 3D Systems and Stratasys, having collapsed over the past two years due to numerous problems, are up sharply since recently hitting bottom. Despite the improvement and expectations of a turnaround, Milunovich believes that HP will be a disruptor. He says that HP expects to formally announce its first product in a few months, with availability by year end. “We expect HP to discuss betas with large industrial companies and provide impressive performance metrics,” Milunovich wrote. He also said, “(HP) indicates little interest in acquiring either Stratasys or 3D Systems, which surprises us.” He believes that HP could gain broader technology, patents, channels and, with 3D Systems, metals capability, via an acquisition of one or the other. HP has also said that it plans to avoid the consumer market, where 3D Systems and Stratasys have flailed. 3D printer revenue, including supplies, is expected to top $7 billion this year and approach $10 billion by 2017. Despite the struggles of 3D Systems and Stratasys, the 3D printing industry is stronger than it seems , say industry analysts who track the field. Among companies with big investments in 3D technology are Nike ( NKE ) and General Electric ( GE ). Nike has used 3D printers to develop several sport shoes, while General Electric uses them to produce advanced jet-engine fuel nozzles. Scalper1 News
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