3D Printing Stocks Get a Boost from CitiGroup

Analysts recommend 3D printing stocks

market, 3d printing, citigroup, investor,In early trading this week 3D Systems (DDD) and Stratasys (SSYS) stocks took a dramatic jump as analysts from Citigroup gave the two companies a “buy” ratings. By midsession on Monday 3D Systems’ stock was up 8% garnering a $52.41 price per share. Nearly mirroring DDD’s performance, Stratasys’ stock rose 5% to a whopping $111.07.

According to Citigroup, 3D Systems’ printers are “best positioned to capitalize on all three potential market opportunities (prototyping, manufacturing, consumer)”. Analysts at the global bank also believe Stratasys can achieve “sustainable margin expansion and earnings growth with materials consumption driving recurring revenue mix”. Citi placed its upper bar for SSYS at $125.

This news comes on the heels of a new research report that saw analysts include 3D printing as one of ten technologies that could prove disruptive to business. According to the report, analysts suggest that 3D printing could benefit from falling commodity prices and easy-to-use CAD software.

Beyond everyday use, Citi believes that in the near future 50% of parts used in jets could be 3D printed, giving the 3D printing industry a huge boost and bringing its total value to $6.5 billion by 2019. Along with the aerospace industry, orthopedic, and low volume industries like jewelry will likely be the first adopters of 3D printing.

While market analyst across the spectrum have tossed out various numbers for how large the 3D printing industry could get, one thing is for sure, there’s room to grow in the world of additive manufacturing.

Update: As of market close on Tuesday investors had backed off of their Monday gains. DDD was trading at $49.39 a share and SSYS was valued at $104.24.

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