3D Systems Corp’s shares climbed to a record amid speculation it could be the next maker of printers that create 3D objects to become a takeover target.
Shares of 3D Systems rose 6 percent to US$70.01, the highest close since at least December 1989 and a 23 percent increase from Monday last week, the day before the company reported third-quarter sales that topped analysts’ estimates. About 9.94 million shares were traded, or more than two-and-a-half times the three-month average.
With 3D Systems’ growing revenue in a nascent industry, the company could attract possible bidders, S&P Capital IQ analyst Angelo Zino said in a telephone interview.
“Given the growth potential in this space, would that be a possibility? Absolutely,” Zino said.
Popularity for 3D printers has increased among engineers, designers and manufacturers as prices have fallen, making them affordable to more consumers. Other companies in the industry have already started to join forces as they seek to tap rising demand. Stratasys Ltd agreed in June to buy startup MakerBot Industries LLC for at least US$403 million.
3D Systems last week raised its forecast for full-year revenue to as much as US$530 million from a previous projection for a maximum of US$510 million. Last year, revenue was US$353.6 million. In the third quarter, 3D Systems reported sales of US$135.7 million, topping analysts’ estimates of US$132.3 million.
3D Systems spokeswoman Alyssa Reichental said the company is “not currently in discussions regarding an acquisition of the company’s shares.”