S&P Capital IQ Sets Expectations On 3D Systems Ahead Of Earnings
In a research report issued Saturday, S&P Capital IQ analyst Angelo Zino maintained coverage on shares of 3D Systems Corp (NYSE:DDD) with a Buy rating and a $50 price target, as the company will report third-quarter earnings before the market opens on Monday.
Zino noted, “We forecast revenue will increase 37% in 2014 and 31% 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 see inorganic growth from recent acquisitions, including the July 2014 announcement to acquire Simbionix, as additional revenue drivers.” Zino added, “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.” The analyst continued, “We forecast operating EPS of $0.75 in 2014 and $1.16 in 2015.We think capacity constraints and consumer product delays are temporary.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Angelo Zino has a total average return of -11.4% and a 41.2% success rate. Zino has a -42.3% average return when recommending DDD, and is ranked #3214 out of 3382 analysts.