3D Systems Corp (DDD)

[rayank]

3D Systems (DDD : NYSE :$30.59 | BUY): We see DDD set up for a nice bounce into CES (January 6th-9th) based on low expectations following disappointing execution and a sharp potential snap back for gross and operating margins in Q4. Longer term, we like the company’s broad technology portfolio and positioning as turn-key provider of the entire 3D printing digital thread. The said, beyond the near-term likelihood for a V shaped recovery off of low expectations enhanced by potential covering of heavy short interest, matching industry organic growth proved to be somewhat of a challenge in recent quarters. Management continues to expect to grow at or above industry growth rates, implying strong organic growth of at least 25%, but investors will need to see better execution to these expectations for meaningful multiple expansion to occur. Our $50.00 price target for DDD is 6x our 2015 sales estimate of $876.5M.

http://blogs.barrons.com/techtraderdaily/2014/12/12/canaccord-2015-will-be-a-better-year-for-3d-printing-stocks/?mod=yahoobarrons&ru=yahoo