Market Overview

Pacific Crest Slashes Price Target for 3D Systems

Share:
Related DDD
Benzinga's Top Upgrades, Downgrades For February 9, 2018
Mid-Afternoon Market Update: Tuniu Gains After Announcing $100M Share Repurchase Program; Aradigm Shares Slide

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

DateFirmActionFromTo
Feb 2018JP MorganDowngradesNeutralUnderweight
Nov 2017PiperJaffrayUpgradesUnderweightNeutral
Nov 2017CitigroupMaintainsSell

View More Analyst Ratings for DDD
View the Latest Analyst Ratings

Posted-In: Pacific Crest Weston TwiggAnalyst Color News Price Target Analyst Ratings

 

Related Articles (DDD)

View Comments and Join the Discussion!