Tag Archives: ssys

3D Printer Stocks Soar: BofA Sees New DDD CEO Ending ‘Bloated’ Costs

3D printer stocks 3D Systems ( DDD ) and Stratasys ( SSYS ) skyrocketed Thursday after Bank of America/Merrill Lynch went from bear to bull on 3D. 3D Systems jumped 10.1% to 18.12 on the stock market today , after hitting a nine-month high of 19.76 in the morning. Stratasys rose 5.9% to 29.35, breaking out of a base going back to late October. Bank of America gave 3D Systems a “double upgrade,” raising it to a buy all the way from underperform. It hiked its price target from 11 to 26. Why the sudden switch from bear to bull? BofA sees new CEO Vyomesh Joshi fueling a turnaround. Joshi had worked for HP Inc. ( HPQ ), running HP’s printing business. BofA sees Joshi improving profit margins by going after 3D’s “bloated cost structure.” “The past several years of our negative stance have been predicated on the company’s poor M&A strategy, choice of assets that did not have complete exposure to 3D printing, increasing investments in low margin areas like consumer (now exiting part of low end consumer) and an aggressive investment and channel strategy that led to a bloated cost structure and revenue headwinds,” BofA analysts wrote. BofA raised 3D EPS targets for 2016 by 2 cents to 30 cents, 2017 EPS revised up by 18 cents to 57 cents and 2018 EPS revised up to 71 cents from 43 cents. Smaller 3D printer makers ExOne ( XONE ) and Voxeljet ( VJET ) also rallied Thursday. ExOne jumped 7.6% to their best level since April 2015. Voxeljet climbed 8.6%. Related: 3D Printers Gaining Traction With Nike, Boeing HP Inc.

3D Printer Stocks Scream Higher As BofA Sees 3D Systems Revival

3D printer stocks 3D Systems ( DDD ) and Stratasys ( SSYS ) skyrocketed Thursday morning after Bank of America/Merrill Lynch goes from bear to bull on 3D. 3D Systems jumped 15.5% to 19.18 on the stock market today , a nine-month high. Stratasys rose 7.6% to 29.81, breaking out of a base going back to late October. Bank of America gave 3D Systems a “double upgrade,” raising it to a buy all the way from underperform. It hiked its price target from 11 to 26. Why the sudden switch from bear to bull? BofA sees new CEO Vyomesh Joshi fueling a turnaround. Joshi had worked for HP Inc. ( HPQ ), running HP’s printing business. BofA sees Joshi improving profit margins, which have declined. BofA raised 3D EPS targets for 2016 by 2 cents to 30 cents, 2017 EPS revised up by 18 cents to 57 cents and 2018 EPS revised up to 71 cents from 43 cents.  

3D Printing Industry Grew 26% In 2015, Slower Than Previous Year

During a challenging year, revenue from 3D printers and services still rose 26%, to $5.16 billion, in 2015, says researcher with the Wohlers Report. Still, that’s marks a slowdown from 35% growth during the previous year, to $4.1 billion. Wohlers estimates the market for 3D printers and services will approach $10 billion in 2017. The 2015 growth rate was well above that reported by the two industry leaders: 3D Systems ( DDD ) and Stratasys ( SSYS ). 3D Systems reported 2% revenue growth in 2015, to $666 million. At Stratasys, revenue fell 7% to $696 million. Shares of Stratasys and 3D Systems were crushed in 2015, as both posted disappointing earnings quarter after quarter. Investors now appear to be returning for another look. 3D Systems has climbed 165% since marking its low of 6 on Jan. 20. It was trading near 16 Thursday afternoon, down a fraction. Stratasys is up 83% from its January low of 14.88. It was trading near 27 Thursday, little changed from its previous close. Analysts have continued to take a cautious tone on the two stocks, not fully convinced of a full-scale rebound, though 3D printing technology is being increasingly embraced by corporations, governments and universities. Wohlers said there were 62 manufacturers that sold industrial-grade 3D printers with a value above $5,000 last year, up from 49 in 2014.