3D Systems Corporation Analyst Day Could Provide Strong Upside

Updated on

3D Systems Corporation (NYSE:DDD) is scheduled to hold its investor and analyst meeting on Tuesday, June 10. Goldman Sachs analyst Sam Eisner says that the event could provide an upside catalyst for the stock that has tumbled almost 47% this year so far, reports Barrons. Eisner recommends buying call options. Last year, the 3D printing company’s stock gained 2.3% after the investor and analyst day. But this year a much bigger upside movement is possible as the Wall Street expects 3D Systems to raise its full year guidance.

3D Systems likely to raise its FY2014 guidance

Goldman Sachs has a Neutral rating on the stock. Sam Eisner expects 3D Systems Corporation (NYSE:DDD) management to focus on four crucial topics: cash optionality, FY14 guidance, expenditure, and new products. The Rock Hill, South Carolina-based company recently raised $317 million in a secondary offering. Now the company has about $620 million in net cash. Given the company’s large cash position, Goldman Sachs says that 3D Systems is likely to make large-scale acquisitions.

3D Systems Corporation (NYSE:DDD)’s FY2014 guidance calls for $680-$720 million in revenues and $0.73-$0.85 in earnings per share. Eisner expects the company management to raise the revenue guidance because the current guidance doesn’t include revenues from yet-to-be-completed Robtec acquisition. Heavy investment spending remains a headwind to the company’s operating profits, which are expected to decline 400 basis points this year. An update on expected recovery in margins would boost expectations. 3D Systems is expected to launch a number of new products in the second half of 2014. Investors will be looking for updates on order trends for the iSense and Cube Pro.

3D Systems partners with Konia Minolta

Just a few weeks after signing a deal with ScanSource to distribute its 3D printing products and solutions, 3D Systems Corporation (NYSE:DDD) has partnered with Konia Minolta Business Solutions. Konica Minolta will distribute 3D Systems’ complete product portfolio through its dealers and authorized resellers. It shows that 3D Systems is aggressively expanding its distribution network to reach as many customers as possible.

3D Systems Corporation (NYSE:DDD) shares gained 0.10% to $49.14 at 1:23 PM EDT on Thursday.

Leave a Comment