Technology

One for All and All for One: Raised Targets Lifting All 3D Printer Stocks

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In the relatively small and closely watched 3D printing sector, a move by one of the stocks usually causes the others to move as well. On Monday, raised price targets for two of the players, 3D Systems Corp. (NYSE: DDD) and Stratasys Ltd. (NASDAQ: SSYS), are lifting all boats.

In a note from Bank of America/Merrill Lynch, 3D Systems gets a nod because the analysts see significant revenue growth from the use of higher-end 3D printers in direct digital manufacturing. The higher levels of use will drive more sales of high-margin consumables. The analysts also note a benefit from the unit sales growth of low-end 3D printers. The stock is reiterated as a Buy and the price target for the stock was raised from $69 to $90 a share.

The same analysts also boosted their price target on Stratasys stock from $130 to $140 a share based on what they see as potential revenue growth from the sale of low-end 3D printers aimed at the consumer market. They note:

The 3D printer market remains underpenetrated, and [Stratasys] should see significant revenue growth as more consumers adopt low-end 3D printers, while use of the higher end printers in direct digital manufacturing increases sales of higher margin print materials.

If the two analyses sound similar, well, they are. And Germany-based Voxeljet AG (NYSE: VJET) and The ExOne Co. (NASDAQ: XONE) are also getting a lift from the raised target prices at Stratasys and 3D Systems. That shouldn’t be a big shocker because an underpenetrated market with a potential for higher unit sales and more sales of consumables could pretty easily describe Voxeljet and ExOne.

ExOne is trading around $64 in the early afternoon today, up 6.6%, in a 52-week range of $23.50 to $78.80. The consensus price target on the stock is near $70, which implies an upside of around 9.4%. ExOne only came public in February and shares are up 125% since the initial public offering (IPO).

Voxeljet is up more than 17% today, at $69.11, after posting a new post-IPO high of $69.45 earlier. The stock’s low is $19.30. The stock price has doubled since the company came public a month ago. The consensus price target of $54 indicates how quickly this stock has pushed past early estimates.

Stratasys stock is up 4.5% today, at $130.65, after setting a new 52-week high of $134 earlier. The 52-week low is $60.20. The consensus price target here is around $133, so we should be ready for some more price target increases soon.

ExOne stock is trading up 6.6% at $63.69 in a post-IPO range of $23.50 to $78.80. The consensus price target on the shares is $69.60, and this stock, too, should see a boost in target price soon.

 

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