I bought in today.
Besides the fact that the chart makes her look like a winner, here we have a copy/paste from the s+p report
Highlights
-- We forecast revenue will increase 35% in 2014
and 29% in 2015, following a 45% advance in
2013.We see revenue aided by new product releases,
strategic initiatives, and the ongoing
adoption of 3D printers.We are impressed by
an increasing backlog, partly due to higher demand
for DDD's consumer Cube and CubeX 3D
printers. In addition, we believe DDD's distribution
channel expansion should provide additional
leverage for growth.We see growth also
being driven by momentum for services and
materials.
-- Despite recent margin compression from capacity
and headcount additions, we think margins
remain on pace to expand as print materials
growth accelerates.We expect operating
expenses to remain elevated through 2015, as
DDD's R&D and marketing expenses increase
in support of expanding its portfolio.We project
sharply higher unit volume but believe that selling
prices for systems will trend down.
-- We forecast operating EPS of $0.81 in 2014 and
$1.16 in 2015.We think annualized revenue
growth of more than 30% in the next three
years is achievable.
Investment Rationale/Risk
-- Our buy recommendation reflects our view of
the long-term growth prospects for the company
and our belief that the 3D printer industry
will see greater adoption of its product offerings
in the years to come.We believe recent
concerns about margin contraction will soon
alleviate, as capacity and headcount additions
normalize, and as higher margin print materials
growth accelerates.We see revenue outpacing
expenses in 2015 and thereafter, which will
support significant future earnings leverage.
We think DDD warrants a substantial premium
to the technology industry, given our view of
growth potential in the 3D printer space.
-- Risks to our recommendation and target price
include slower-than-expected adoption of 3D
printers, greater-than-expected pricing pressure,
narrower-than-forecasted margins, and
more competitive pressures than we anticipate.
-- Our 12-month target price of $70 is based on
our price-to-sales (P/S) analyses.We apply a
P/S multiple of 7.7X to our 2015 sales per share
estimate. This is a premium to peers that is justified,
in our view, by the growth prospects we
see.
