Shares of two 3D-printer makers 3D Systems (DDD) and Stratasys (SSYS) jumped Monday morning as investment bank Citigroup started coverage of two companies with a pair of buys. In early trades, 3D Systems was up 8% to $52.41, while Stratasys jumped 5% to $111.07.
Image credit: Marketwatch
Citigroup says 3D Systems' product line is "best positioned to capitalize on all three potential market opportunities (prototyping, manufacturing, consumer)" and it sets a $60 price target for DDD. As to SSYS, Citi says it sees "sustainable margin expansion and earnings growth with materials consumption driving recurring revenue mix" and Citigroup set a price target of $125 on Stratasys.
In a note to clients, analyst Kenneth Wong said he believes the 3D printing market "is on the cusp of seeing much broader adoption across more upstream production applications and the consumer end market," which could triple the size of the market within 5 years. "We also expect to see increased utilization of existing systems as customers start to extend use case beyond small batch digital manufacturing," he wrote.
In an earlier massive new research report, Citi analysts listed 3D printing as one of the 10 technologies that will disrupt the way we do business. Citi says the technology is poised to explode because of falling commodity prices, easier to use software, and more complex design capabilities. It believes in the future, 50% of parts used in a jet engine could be manufactured by 3D printers. According to the research firm Wohlers Associates and Citigroup, the 3D printing market could grow to $6.5 billion by 2019 from less than $3.5 billion today. The aerospace, orthopedic, and other high value, low volume industries will be the earliest adopters.
Posted in 3D Printing Company
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MH Murphy wrote at 8/29/2013 11:21:07 PM:
I LOVE IT!! Am so excited about this coming industrial evo/revolution!!!! I've been telling people about it for a year or more Can I join your group in some way? Contact me to tell me how I might become involved - pls.