NEW YORK (TheStreet) -- Shares of 3D Systems Corp (DDD) are gaining 1.82% to $48.70 in midday trading after Piper Jaffray said the three-dimensional printing company landed an unexpected deal with General Motors (GM) valued in the range of $6 million to $8 million.
Piper Jaffray believes General Motors purchased or ordered 11 iPro 8000s which are listed at $600,000 each, and two SinterStation machines, following a flood in its Rapid Prototyping facility in Detroit due to heavy rainfall and ruining multiple machines.
Analysts at the firm believe the deal was likely not in 3D Systems pipeline and could give a boost to the company's system revenue and backlog in the third quarter.
Piper Jaffray kept its "neutral" rating with a $50 price target on shares of 3D Systems.
Separately, TheStreet Ratings team rates 3D SYSTEMS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3D SYSTEMS CORP (DDD) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."