In the third quarter, 3D printing demand was "once again discouraging," Piper Jaffray's Troy Jensen argued in a new research note. However, Jensen said he believes the 3D printing industry is in the midst of a recovery that may take one or two more quarters to materialize. In 2016, that should lead the industry to see "healthy" growth rates.
Related to specific names, Jensen was bullish on the outlook for Stratasys. He said that the channel checks and survey suggested that Stratasys could beat earnings expectations for the first time this year. Further, the product growth rates "should begin to accelerate over the next 1-2 years."
3D Systems' demand, however, "appears to have remained challenged." Critically, the survey pointed to "unhappy channel partners and system quality issues." Though it has made strides, the company has a "long way to go" before those issues are fully resolved.
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