Why 3D Printer ExOne Might Have 7% Upside

• ExOne Co (NASDAQ: XONE) shares are down more than 54 percent year-to-date, despite having gained 5.51 percent on September 8.
• Imperial Capital analyst Saliq Khan initiated coverage of ExOne with an In-Line rating and a price target of $8.
• ExOne’s attempts to improve its operations and generate more purchase orders by building a customer centric mindset are encouraging and may result in upside, Khan said.

Analyst Saliq Khan mentioned that ExOne is a leading provider of 3D printing machines and products, the sales of which are seasonal in nature. The company reported revenues and adjusted EBITDA of $41 million and ($20) million, respectively, for the year ended June 2015.

ExOne’s management aims to boost the percentage of its revenues from non-machine sales from 56 percent in the last 12 months to 60 percent in the current year. “As ExOne sells more printers, we believe, service contracts, replacement parts and consumables are likely to help generate additional ongoing revenue,” Khan added.

Related Link: Why The Future Of 3D Printing Is In 'Multi-Material Printing'

The company is taking various steps, including increasing production service centers, material development initiatives, deployment of an ERP system, reducing debt and deploying working capital to improve its operations.

Khan believes that ExOne’s focus on getting purchase orders by building a “customer-centric mindset’ could enable the company to increase the adoption of its technology.