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3D Systems' Underperform Rating: What Does It Mean For The 3D Printing Industry?

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Analysts at Longbow Research on Wednesday initiated coverage on 3D Systems Corporation (NYSE: DDD) with an Underperform rating.

Analyst Joe Wittine set a $25.00 price target, implying a significant downside from current stock prices. He argued that the company faces execution problems and has "consistently over-promised and under-delivered."

Following the news of this rating, the stock market punished 3D Systems, sending it down 4.76 percent. The stock’s year-to-date loss stands at 67 percent.

Related Link: Bank Of America Comments On 3D Systems & Stratsays

However, many other research firms seem to disagree with Longbow. Jefferies rated 3D Systems as a Buy in late November, setting a $42.00 price target, while Imperial Capital gave it an Outperform rating, also with a $42.00 price target.

As there seems to be plenty of discussion regarding 3D Systems’ future, the 3D printing industry deserves a second glance.

The Industry

Jason North of Jefferies recently commented on the 3D printing industry after he attended Euromold, the largest 3D printing industry conference in the world. "The entire industry is gaining momentum in metal 3D printing, but is experiencing ‘limited visibility’ into SLS speed improvements," he said.

Comparative Point: Stratasys

Stratasys, Ltd. (NASDAQ: SSYS), another prevalent stock in the 3D printing industry, also saw Longbow initiate coverage on Wednesday. Wittine was somewhat more bullish on this company, and gave it a Neutral rating.

Other analyst firms seem more confident: Brean Capital and Canaccord Genuity issued Buy recommendations in November, setting price targets of $125.00 and $140.00, respectively. Both these targets imply a considerable upside potential.

Looking Forward

Moreover, recently expanded distribution agreements with Staples, Inc. and Home Depot Inc for its MakerBot printer bode well for penetration within consumer markets.

Latest Ratings for DDD

Oct 2016FBR CapitalAssumesMarket Perform
Aug 2016JefferiesMaintainsHold
Jul 2016PiperJaffrayDowngradesNeutralUnderweight

View More Analyst Ratings for DDD
View the Latest Analyst Ratings

Posted-In: Euromold home depotAnalyst Color Long Ideas Initiation Analyst Ratings Tech Trading Ideas


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