3D Systems Corporation (NYSE:DDD) shares gained 7.43% on Tuesday. RBC Capital Markets analyst Amit Daryanani said in a research note that the company is well-positioned to sustain its upward momentum in the second half of this year. RBC has an Outperform rating on the stock with $64 price target. The research firm expects 3D Systems’ fundamentals to improve in the coming quarters.
3D Systems canceled competitor conference due to management conflict
Daryanani noted that the entire 3D printing industry is at the cusp of witnessing solid organic growth. Momentum from the new product launches and contribution from recent acquisitions should provide an upside to 3D Systems in June quarter. These things will also help the Rock Hill-based company achieve its FY2015 revenue target of $1 billion.
Recently, reports surfaced that 3D Systems canceled out of a competitor conference. After speaking to the company management, RBC Capital Markets said that the company had “tentatively” scheduled to attend the event. However, due to management conflict relating to the CFO transition, 3D Systems decided not to attend the conference.
About 33% of 3D Systems’ float is sold short
Daryanani said that about 33% of 3D Systems’ outstanding shares are sold short. With an average daily trading volume of 3.5 million shares, it will take 9.6 days to cover the short positions. Given high short interest in the stock, RBC Capital Markets believes that we would see continued short squeeze in 3D Systems that will push the stock higher.
Last month, the 3D printing company raised its full year revenue guidance from $680-$720 million to $695-$735 million. The company said recent acquisitions such as Robtec and Medical Modeling will contribute to its revenues. RBC says the midpoint of the revised guidance reflects a conservatism on new product launches that could provide upside.
3D Systems shares fell 1.34% to $62.61 at 11:32 AM EDT on Wednesday.