3D Systems (DDD) to Benefits from Synergies Related to Rapidform Acquisition
Needham & Company reiterated a Buy rating on 3D Systems (NYSE: DDD) and raised its price target to $40.00 (from $38.00)
Analysts at Needham and Company said 3D Systems (NYSE: DDD) $35 million acquisition of scan-to-CAD company, Rapidform, was consistent with management’s strategy of providing customers with an integrated platform of 3D capture, inspection and 3D print manufacture tools.
An analyst report by Needham said the acquisition is expected to add $15 million of revenue in 2013 and $0.06-0.09 in non-GAAP EPS. It will also greatly strengthen 3D’s presence in Korea and Japan and expand its global channel network by around 25 to 30 percent.
"While DDD is clearly not immune to macro headwinds, we believe the company remains well positioned to deliver solid organic growth. We reiterate our Buy rating based on the potential for increased operating leverage as DDD benefits from synergies from recent acquisitions and a more profitable business mix," said analyst James Ricchiuti.