3D Systems Corp (DDD)

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3D Stocks Are All Getting Lifted: 3D Systems Corporation (DDD), Stratasys, Ltd. (SSYS), ExOne Co (XONE), Voxeljet AG (ADR) (VJET), Proto Labs Inc (PRLB)

by Brett Flynn / August 25, 2014

3D stocks climbed higher on Friday after Jeffries said the 3D printing industry’s consumer segment is over hyped and serious money remains in industrial prototyping education and high-end amateurs.

Analyst Jason North said to that end, Stratasys (SSYS) and 3D Systems (DDD) are best-positioned to boost the technology’s penetration of industrial and educational markets. North also likes Proto Labs (PRLB) for the same reasons, but finds the shares pricey and maintains a Hold rating. That penetration of credible markets now stands at an estimated nine percent to 23 percent, and should increase as to high as 79 percent in the next three years, North said.

Meanwhile in the consumer market, Amazon’s (NASDAQ:AMZN) currently best-selling 3D printer creates plastic bobble heads and figurines, and that’s about it.

Customer complaints cite the device’s small size, fragility and lack of color accuracy, said North, who analyzed the company’s 3D store launched July 28. Moreover, only seven percent of the 260 products on Amazon had been reviewed by customers, suggesting a lack of interest.

Big names in the space such as 3D Systems Corporation (NYSE:DDD), ExOne Co (NASDAQ:XONE), Voxeljet AG (ADR) (NYSE:VJET), Proto Labs Inc (NYSE:PRLB) and Stratasys, Ltd. (NASDAQ:SSYS) all closed higher on Friday.

They were rising again after Hewlett-Packard CEO Meg Whitman said on CNBC that Hewlett-Packard (NYSE: HPQ) plans to enter 3D printing space and focuses on penetrating the 3D market organically.

Earlier this month, the industry got a hit two industry players release quarterly results that disappointed investors.

ExOne reported earnings and revenues that disappointed. Margins were weak as well, with 22.3 percent gross margin in the second quarter of 2014, compared 45.3 percent from a year earlier. On a brighter note, ExOne did reaffirm guidance for 2014, with revenues expected to be $55-60 million.

German 3D printer VoxelJet released their earnings report, which disappointed on both the top and bottom line. They too reaffirmed guidance.

http://www.marketsemerging.com/3d-stocks-are-all-getting-lifted-3d-systems-corporation-ddd-stratasys-ltd-ssys-exone-co-xone-voxeljet-ag-adr-vjet-proto-labs-inc-prlb/1711967/