ExOne Co (XONE), Stratasys, Ltd. (SSYS), 3D Systems Corporation (DDD): Tuesday’s Top Upgrades (and Downgrades)

Even if Credit Suisse is somewhat optimistic about where Stratasys’s stock price could go over the next year, the fact that Stratasys is unprofitable, and costs more than 11 times annual sales, suggests there’s at least as much downside as upside to this one. Credit Suisse is right to be cautious.

Last but not least: 3D Systems
I’ve found a lot to like about 3D Systems lately, I admit — and Credit Suisse says this one is its own favorite 3D-printing stock as well, giving 3D Systems Corporation (NYSE:DDD) its only unqualified “outperform” rating in the industry. But that doesn’t mean you should necessarily buy the stock. It doesn’t mean Credit Suisse is right that 3D Systems Corporation (NYSE:DDD) is heading to $62 within the next year.

Sure, it would be nice to see a $10 run (from $52 to $62) over the next 12 months. And 3D Systems Corporation (NYSE:DDD) looks best-positioned to make a run of some kind. Alone among the 3D printing stocks, it’s:

… profitable today (having earned $40 million over the past year)

… generating cash ($39.1 million annually )

… displaying strong quality of earnings as a result

… and bearing an actual, honest-to-goodness positive P/E ratio.

Still, despite all the factors in 3D Systems’ favor, I have to admit that I shudder a little bit at the idea of paying 120 times earnings for any stock — even one that’s supposedly going to grow earnings at 28% or so over the next five years. I’m going to let Credit Suisse go long this one without me.

If I’m too nervous to actually short this stock just because it’s overpriced, I’m still not brave enough to buy it.

The article Tuesday’s Top Upgrades (and Downgrades) originally appeared on Fool.com and is written by Rich Smith.

Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool recommends 3D Systems, ExOne, and Stratasys. The Motley Fool owns shares of 3D Systems, ExOne, and Stratasys and has the following options: short January 2014 $36 calls on 3D Systems and short January 2014 $20 puts on 3D Systems.

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