3D Systems Corporation (DDD) Potential Takeover Target?


There are rumors whirling around that 3D Systems Corporation (NYSE:DDD) will be taken over soon. These rumors are considered as the paramount reason behind the big July 1 rally of 3D Systems’ stock, which climbed to around $63. All the short sellers of the market that are trying to cover their bets will be taking this favorable market trend for 3D Systems Corporation (NYSE:DDD) upwards throughout the week. The big 6.12% jump by 3D Systems has really given a great push for this stock to do good in the upcoming quarter. In an interview on CNBC about the likely acquisition of DDD, Amit Daryanani, analyst from RBC Capital Markets, LLC, said that there is a small likelihood that 3D Systems gets taken over.

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Answering to the question that whether 3D Systems Corporation (NYSE:DDD)  is a good option to be taken over, Daryanani said that the company is doing well in the market and it will definitely be the option under consideration by the industrial centric companies. He said that 3D Systems has the potential to be the part of industrial and manufacturing domain of the market.

Daryanani thinks that 3D Systems is a free call option and nothing can be surely said about the consumer vs manufacturing comparison part. He thinks that 3D Systems Corporation (NYSE:DDD) would be taking over other companies in the future in order to dilute the rumors. He said that the CEO 3D Systems, Abraham N Reichental, would really be pushing to stay alone in the market space and get polished as a business entity which can rely on its own capital and resources.

 “I think he wants to ensure 3D Systems Corporation (NYSE:DDD) is well positioned to capitalize on themselves, I think his strategy, his preference would be to do it alone as an independent entity versus got acquired,” said Daryanani.

Disclosure: None