Pacific Crest Slashes Price Target for 3D Systems
In a note released Tuesday, Pacific Crest analyst Weston Twigg cut the price target for 3D Systems (NYSE: DDD) from $91 to $65 but has the company rated at Outperform.
Twigg responded to Tuesday's approximately 11 percent sell off based on what he called a "relatively clean earnings call" by stating, "We now think sentiment has turned too negative and is overdone."
Twigg noted that although concerns about gross margin are valid, growth appears to be the key factor. On this Twigg acknowledged that gross margin fell to 40 percent, but maintains that gross margin will improve from new products ramping up to volume production. Additionally, Twigg estimates that annual revenue growth will range from 30 - 40 percent over the next two years.
In his closing comments, Twigg noted that both reiteration of EPS guidance and stabilizing operating expenses, as well as the expected midyear acquisition of Robtec, are positive signs.
Latest Ratings for DDD
|Sep 2014||Pacific Crest||Downgrades||Outperform||Sector Perform|
|Sep 2014||Morgan Stanley||Initiates Coverage on||Equal-weight|
|Aug 2014||Stifel Nicolaus||Initiates Coverage on||Buy|
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