3D Systems shares up after analyst raises target
3D Systems shares rise as Canaccord analyst raises price target on maker of 3-D printers
NEW YORK (AP) -- Shares of 3D Systems Corp., which makes 3-D printers, climbed Monday after an analyst raised his price target on the shares.
THE SPARK: Canaccord Genuity analyst Bobby Burleson raised his price target from $45 to $50 in a research note, saying strong demand for 3D Systems' products could help it deliver better-than-expected earnings and revenue. He also expects the stock to rise as the company commercializes its system for making custom carpal tunnel braces in the second half of the year.
THE ANALYSIS: Burleson lowered his earnings forecasts for 2013 and 2014, however, to account for the increase in the company's amount of stock outstanding. 3D Systems said Friday that it was issuing 7.1 million new shares, selling them for about $272 million in a public offering.
His new price target is based on the share price, relative to earnings, of competitor Stratasys Ltd.
Canaccord Genuity was one of the banks that managed 3D Systems' share offering along with Piper Jaffray & Co. and Needham & Co.
SHARE ACTION: The Rock Hill, S.C., company's shares rose $3.05, or 7 percent, to $46.90 in afternoon trading. Earlier Monday, they peaked at $47.35, just shy of the all-time high of $47.99 hit in January.