Citi Previews 3D Printing Q1 Earnings: 'Sentiment Tracking Ahead Of Fundamentals'

Kenneth Wong of Citi offered preview for the 3D printing sector.

Wong noted that the valuation across his coverage of 3D printing stocks has risen 40 percent year-to-date and nearly doubled since "troughing" in mid-February.

"We believe the upside scenarios from demand snapback, operational efficiencies and take-out potential are overstated," the analyst wrote. "The Rapid 3D printing conference (May 16–19) is around the corner and likely be viewed as a positive catalyst."

Wong offered a quick look at three 3D printing names.

Stratasys

According to Wong, Stratasys, Ltd. (NASDAQ: SSYS) (reporting May 9 before market open) should report its first-quarter sales to be consistent with his estimate of $163.8 million. The analyst added that his channel checks with partners indicate that sales trends appear to be "less bad," which is "an improvement."

Related Link: Here's What Happened At Jefferies' 3D Printing Summit

3D Systems

Wong's industry checks into 3D Systems Corporation (NYSE: DDD)'s business (reporting May 4 before market open) is "still fairly negative," which was nevertheless "expected considering the market environment and adjustments to the new channel program."

Voxeljet

Finally, Voxeljet AG (ADR) (NYSE: VJET) already provided quarterly guidance, and the analyst expects the company to report its results in line with expectations. The analyst added that strength should come from the services business with some upside due to better utilization of additional capacity.