Why 3D Systems Popped Today

While Fools should generally take the opinion of Wall Street with a grain of salt, it's not a bad idea to take a closer look at particularly stock-shaking upgrades and downgrades -- just in case their reasoning behind the call makes sense.

What: Shares of 3D Systems (NYSE: DDD  ) climbed 5% today after Deutsche Bank initiated coverage on the 3-D printing technologist with a buy rating.

So what: Along with the buy rating, analyst Sherri Scribner planted a price target of $95 on the stock, representing 25% worth of upside to yesterday's close. While value investors might be turned off by the stock's massive gain in 2013, Scribner believes there's plenty of room to run given 3D Systems' strengthening position in the still-rapidly growing 3-D printing space.

Now what: According to Deutsche, 3D Systems' risk and reward trade-off remains particularly attractive. "The company has increased its materials and services offerings, which has helped expand margins, and we expect future growth in materials to benefit margins over time," noted Deutsche. "With strong industry growth just beginning to take off, we view 3D Systems as one of the key beneficiaries." Of course, with 3D Systems up about 185% from its 52-week highs and trading at a forward P/E of 60, Fools will need plenty of tech-savvy to figure out how much of that growth is already baked into the valuation.

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  • Report this Comment On December 10, 2013, at 4:29 PM, 4nt4res wrote:

    Hey what about this French 3d Printing company: Groupe Gorgé (EPA:GOE). They recently acquired a very fast 3d printing technology, based on resins and UV printing (kind of a Laserjet equivalent), that already sold machines to the medical industry. P/E is quite low compared with DDD.

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Related Tickers

4/17/2014 4:00 PM
DDD $48.17 Down -0.62 -1.27%
3D Systems CAPS Rating: ****