Analysts Remain Upbeat Despite Warning From 3D Systems
3D Systems (NYSE: DDD) cut its profit estimate for 2013. The fear of a bubble in the 3D printing industry has come back and has sent shares down about 28 percent.
Shares of the company's rivals also plummeted after shares of other 3D printer makers also fell sharply after 3D Systems profit warning came out. 3D Systems is the largest 3D printer maker by market capitalization. 3D Systems has also been the target of a short sell led by Citron research.
3D Systems trimmed its 2013 adjusted profit estimate to 83-87 cents per share from 93-1.03 cents per share, saying research and development costs had risen.
Its revenue forecast of $680 million-$720 million came in ahead of analysts' average forecast of $671.3 million, which is still good news, showing signs of a growing space and market share.
Overall, analysts are very optimistic about 3D Systems.
Analyst Wamsi Mohan from Bank of America has said that their Price Objective on 3D Systems is $90.0 per share; it has also stated that it bases its Price Objective not on its early phase of growth, but on sales based metrics. S&P Capital IQ also maintains its buy recommendation.
Credit Suisse has also decided to maintain its neutrality rating.
Deutsche Bank also said that its price target was $115.0 per share, the estimate is steady because although guidance was a disappointment revenue is still solid.
3D Systems has states that it is willing to tolerate earnings reduction and gross profit margin compression in the near term to accelerate its growth rate and market share.
The company is positioned to double revenue over the next couple of years on organic growth of at least 30 percent, CEO Avi Reichental said in a statement.
The tech company also forecasts adjusted earnings for 2014 below the standard analyst estimate.
Shares of 3D printing companies have had a good gain over the past couple of years, as the companies have started to adapt to the consumer market.
3D Systems shares have jumped 60 percent in the past six months, while Stratasys jumped 31 percent. Voxeljet shares doubled on their market debut on October 18 2013.
3D Systems expects to report fourth-quarter and full-year 2013 results on February 28.
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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