3D Systems non-core assets sale 'the first of many' catalysts, says Craig-Hallum

Craig-Hallum analyst Greg Palm says that less than 1 month ago, he argued that the share price of 3D Systems was disconnected from the underlying fundamentals and offered up several ways where shareholder value could be enhanced. Now, the first of such hit the tape with the sale of Cimatron and GibbsCam, one of the assets Palm highlighted in a prior note. Notably, the purchase price is at the high end of his estimated range and announcement and close date obviously sooner than he was expecting. The analyst believes the sale means the company will not issue any shares under the ATM program in Q4 and is looking at potentially eliminating the program altogether. While this was a much needed catalyst for the stock, Palm thinks it's "the first of many" and expects a solid quarter and commentary to be offered up when the company reports quarterly earnings. He reiterates a Buy rating and a price target of $11 on the shares.