At Bank Of America, The analysts wrote, “We are downgrading shares of 3D Systems to Underperform with a PO of $65 for the following reasons (1) Organic growth rate peaking in 2014 and incremental topline growth will come at the expense of margins, (2) We view the increased investments as a catchup in spend necessary to stay competitive rather than driving incremental growth, (3) A lot of the M&A while additive to near term growth, in our opinion, will result in diluting LT organic growth and adds integration and execution risk in the interim, (4) A lot of high profile partnerships sound exciting (Motorola Mobility, Hasbro, Hershey’s etc.) but success will be predicated on widespread adoption and margin performance driven by such ventures will likely be challenged.” William Dante, of the Association of 3D Printing feels that: “3D Printing Marketing is still an issue, and those firms who can market and sell will be the eventual winners.”
3D Systems (NYSE:DDD) opened at 80.74 on Monday. 3D Systems has a 1-year low of $27.88 and a 1-year high of $97.28. The stock’s 50-day moving average is $81.10 and its 200-day moving average is $67.56. The company has a market cap of $8.298 billion and a price-to-earnings ratio of 174.76.
Several other analysts have also recently commented on the stock. Analysts at Citigroup Inc. set a $78.00 price target on shares of 3D Systems in a research note on Wednesday, February 12th. Separately, analysts at Zacks downgraded shares of 3D Systems from a “neutral” rating to an “underperform” rating in a research note on Monday, February 10th. They now have a $64.40 price target on the stock. Finally, analysts at William Blair reiterated an “underperform” rating on shares of 3D Systems in a research note on Thursday, February 6th. Three analysts have rated the stock with a sell rating, four have given a hold rating and eleven have given a buy rating to the company. 3D Systems has an average rating of “Hold” and an average target price of $86.24.
3D Systems Corporation (NYSE:DDD) is a holding company that operates through subsidiaries in the United States, Europe and the Asia-Pacific region.
There has been a lot of hype on 3D printers at last year CES and now this year I saw tons of competitors offering low-end models as well as high-end professional desktops. XYZprinting Inc. from Taiwan, a new entrant revealed their da Vinci 3D printer with a starting price of just $499, cost as much as a color laser printer a few years back. It is a simple plug-and-play design for small business and personal use. Now I am not sure how often if you need to use one if you’re not a designer. The nice thing is it allows access to a database for free 3D models and 12 different color filaments to choose from. I guess you can print your iPhone case, earings or even chess set. Still hard to think of a reason to own one at home other than novelty.
On the higher end,ChefJet 3D printer and the ChefJet 3D Pro printer costing between $5,00 to $10,000. There is the Solidoodle’s 4th generation printer priced at $999 which I have not tried out. And there is the MakerBot’s Replicator priced at $2,899 but this year they introduced a compact Replicator Mini which will cost $1,375. Another 3D printer maker Cube will be introducing a new model which will be priced under $1,000. We can see these printers selling below $500 in a year as they will get aggressive in pricing to gain market share. The quesion remain what is the reason to own one?
The real money is in the business market such as the ability to print spare parts, or complete part without assembly and complex inner structures too difficult to be machined. 3D printing makes it possible to manufacture pretty much anything in just 5-10 hours depending what you’re printing, and, as you can surely imagine, this capability would come in very handy in product parts which sometimes take days to locate and ship due to inventory supply issues. A piece of equipment breaks and your repair technician can print it for you.
3D printing has attracted a lot of interest but still at it’s infancy, the material science necessary for a lot of these claims about printing tooth or even human organs just isn’t there yet. You can’t use the same plastic or metal for different parts. It comes down to different tolerances and they are critical. So we’re a few years away. And we will get there
Bloomberg’s Cory Johnson of Bloomberg reports on 3D printing companies’ shares falling and what it means for the 3D printing industry. (Source: Bloomberg)
Where was the industry and where is the 3D Printing Industry heading? Bioprinting, scanning and rapid manufacturing are all trends. Will they be mainstream in the next decade?