I first recommended 3D Systems (DDD) on Aug. 12 at under $47.50 and again on Aug. 27 at $50.75. On Aug. 20 Citi analyst Ken Wong gave DDD a Strong Buy rating with a $60 price target, saying the 3D-printing market should more than triple in size through 2018. And on Oct. 9 at $49.51, I confirmed my long-term bullish thesis on DDD amid profit-taking after a false breakout.
On Nov. 6 Brean Capital analyst Ananda Baruah reiterated a Buy rating on DDD and raised the price target to $77 from $70.
Technically DDD broke from a compound top at $51.50 in mid-August on high volume and topped at $56.23. For all of September and part of October the stock consolidated before reversing up from a close at $49.51 on Oct. 9. It then rocketed to a high at $71.34 on Nov. 6 and yesterday reversed down from that high.
Speculative investors with an interest in the 3-D printing industry will want to own DDD. And yesterday’s reversal could provide an opportunity to own it at a buy-under price of $62 — which is approximately a 40% (Fibonacci) pullback from the reversal at $49.51 to the high of $71.34.