Brean Capital Believes Metals & Consumer Operational Headwinds Could Be Behind Us
In a report published Tuesday, Brean Capital analyst Ananda Baruah reiterated a Hold rating on 3D Systems Corporation (NYSE: DDD).
In the report, Brean Capital noted, “We remain Hold rated on DDD following a relatively ‘as expected' Sep Q – with better-than-anticipated Opex leverage driving a slight $0.01 EPS beat. We continue to look to '15 Revenue and Operating Margins as a moving target given the recent hiccup in DDD's Metal's business (along with Consumer) altering organic growth expectations, as well as the optionality on Opex investment (invest or pass thru to EPS). That said, DDD demonstrated solid Opex control in the Sep Q, which the company indicated was a precursor for a flattish to perhaps slightly down cadence of Opex as a % of Revenue going forward – which we'd view as supportive of the company's ability to begin achieving/beating EPS going forward. That said, DDD is trading at 34x our '15 EPS of $1.05, consistent with our belief that in the N-T, DDD could trade between 30x – 40x EPS (or $30 - $40), more consistent with valuation multiples prior to 2H13. Our prudent DCF continues to suggest attractive cash flow ultimately should be realized (we believe conservatively to $46+).”
3D Systems Corporation closed on Monday at $36.22.
Latest Ratings for DDD
Nov 2014 | Imperial Capital | Maintains | Outperform | |
Nov 2014 | Citigroup | Maintains | Neutral | |
Oct 2014 | Brean Capital | Downgrades | Buy | Hold |
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