One analyst has a handful of 3D printing stocks rocketing higher today. It turns out that Stifel analyst Noelle Dilts is bullish on the industry, and ExOne (NASDAQ:XONE), Stratasys (NASDAQ:SSYS), Desktop Metal (NYSE:DM) and 3D Systems (NYSE:DDD) are on the move as a result. So what do you need to know now?
To start, investors should familiarize themselves with exactly what happened. Dilts initiated coverage on XONE, SSYS and DM stock with bullish ratings. She also initiated coverage of industry peer DDD stock with a neutral rating.
- Dilts set a price target of $28 on DDD, implying 12% downside.
- She set a price target of $30 on DM, implying 20% upside.
- The Stifel analyst set a price target of $40 on SSYS, implying 13% upside.
- Lastly, she set a price target of $20 on XONE, implying 8% upside.
But what led Dilts to this group of hot 3D printing stocks? According to the analyst, each company stands to benefit from the growing interest in 3D printing. Looking at their different strengths, she highlighted ExOne for its role in industrial end part printing. Desktop Metal, a relatively new entrant to the public markets, stands out as a beneficiary from increased consumer adoption.
3D Systems, the only company to receive a neutral rating, has already rallied far. Because of that, Dilts said she is worried it faces limits on its near-term upside potential.
Unsurprisingly, each of these 3D printing stocks is posting big gains on Tuesday. With that in mind, what else should investors understand about the industry before diving in?
3D Printing Stocks: Why Top Names Are on the Move
Coming into 2021, Wall Street experts were not unfamiliar with the realm of 3D printing. Instead, it seemed the popular theme was just waiting for its big break. Now, it looks like that break is here. The novel coronavirus has spurred on all sorts of innovation, and even big companies like Tesla (NASDAQ:TSLA) are looking to increase their use of 3D printing in standard manufacturing operations. As InvestorPlace analyst Luke Lango wrote, the fourth industrial revolution is here. 3D printing stocks are leading the way.
Why is Lango bullish now? Acknowledging the failures of 3D printing, or additive manufacturing as many in the industry call it, he writes that the machines are making huge advancements. Now 3D printing can help with customization and automation. It will disrupt standard assembly lines, reshaping how we think about manufacturing. In fact, he thinks this market will be worth $150 billion by the end of the decade… up from just $12 billion in today.
No wonder Dilts is such a fan. As you eye the big moves in 3D printing stocks today, consider these four recommendations from Lango.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.