The $70 target is already there...more firms will raise their PT over the coming days/weeks. Let's Ride!
Brean Capital maintained a Buy rating on 3D Systems (NYSE: DDD) and raised its price target to $70.00 (from $60.00).
"We're raising our TP to $70 (from $60), as we believe solid unit growth will continue through '15, while the growing installed base begins to lead to a higher recurring revenue stream – namely the higher margin Materials," said analyst Ananda Baruah.
"We believe Street EPS of $1.33 and $1.63 for '14 and '15, respectively, are likely to increase. We're introducing ’15 EPS of $1.80, and as such, our $70 TP implies a target P/E of 39x –or ~1.3x our EPS growth estimate of ~30% (consistent with our existing valuation framework of 1.3x – 1.5x PEG)."
"DDD reports tomorrow 10/29 BMO and we anticipate potential "mathematical gymnastics" as: 1) Street Sep Q GM estimates of 54.8% vs. 51.9% in the Jun Q present a healthy hurdle and 2) we anticipate DDD will provide its initial breakout of its Cubify consumer business which we believe is between 5% - 10% of revenue," he added.