3D Systems () got a nice jolt yesterday on the back of some love from Wall Street.
DDD improved 7% Monday after Citi analyst Kenneth Wong — and on sectormate Stratasys () — with “buy” ratings. Stratasys, for those who don’t know, recently bought Makerbot — a company which has been making headlines for its handheld 3D scanner and distribution deal with Microsoft (
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The new $60 price target for DDD represents 20% more upside after today’s pullback, which brought the stock’s 52-week gains to 80%. Meanwhile, the $125 price target on SSYS translates to 14% upside for a stock that has soared 70% in the same time frame.
Of course, the trouble with price targets is that they don’t give a specific time horizon. But based on Wong’s bullish comments on the 3D printing market as a whole, a particular time frame might not be necessary — the broader direction is up, up, up.
The most notable prediction Wong made was that the 3D printing market could triple during the next half-decade thanks to “much broader adoption across more upstream production applications and the consumer end market.”
did note that such rapid growth projections must be taken with a grain of salt, considering the small size of the market. As of 2011, the industry was worth just $1.7 billion, while 3D-printed parts made up around half that.
Meanwhile, despite being a personal fan of the technology, InvestorPlace tech expert Brad Moon has been quick to point out the many obstacles consumer-level 3D printers face.
But there are plenty of tailwinds to offset those concerns. Mims explained a few, including the fact that key patents will expire next year, while the materials with which you can 3D print continue to multiply.
The bottom line: If Wong’s right about just how much growth is on tap in the next few years, 3D Systems — and even companies he didn’t mention, such as ExOne () — might rocket even higher than he has predicted.
As of this writing, Alyssa Oursler did not hold a position in any of the aforementioned securities.
