Nano Dimension Shares Initiated With Buy Rating By Lake Street

Lake Street Capital Markets initiated coverage of Nano Dimension Ltd - ADR (NASDAQ: NNDM) with a Buy rating and a price target of $12.

Analyst Eric Martinuzzi pointed to Nano Dimension's "revolutionary" multilayer circuit board printer, the DragonFly 2020, as the reason for their positive rating. The 3D printer will give engineers the ability to print multilayer printed circuit boards on-site, and in hours, while previously the work would need to be sent to a third party.

"While currently in the development stage," explained Martinuzzi, "our research indicates the company has a sizable market opportunity and relatively little competition."

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Nano Dimension delivered two beta systems in recent months that are expected to be running by the fourth quarter this year, said the analyst.

While traditional 3D printing companies 3D Systems Corporation (NYSE: DDD) and Stratasys, Ltd. (NASDAQ: SSYS) are showing declines in revenue, more specialized companies like Arcam and SLM Solutions, who incorporate 3D printing into the steel industry are seeing growth of 26 percent and 38 percent, explained the analyst.

"Similarly, Nano Dimension represents a new disruption in a previously-unpenetrated end market for 3D printing," said Martinuzzi. "After what we expect to be a market-seeding year in 2017, we are forecasting nearly 300 percent growth for Nano Dimension in 2018."

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