This Analyst Says 3D Systems' Catalysts Are Limited

In a report published Monday, analysts at Stephens reiterated an Equal-Weight rating on shares of 3D Systems Corporation DDD, setting a $32 price target.

The stock was down 2 percent.

The analysts "see the range of potential catalysts for the stock as limited to operational execution against expectations, and with a deeper and more experienced leadership team (new COO, CFO) [they] believe DDD has the building blocks necessary to execute."

Merger and acquisition activity, both with 3D Systems as the acquirer and/or target, are unlikely in their opinion "given DDD's intention to slow down acquisitions, and the expensive price tag an acquirer would have to pay to buy the company. Several building blocks are coming together that suggests a turnaround is imminent, but we do not view the risk / reward as favorable at this point," the report explained.

The firm lowered its fiscal 2015 adjusted EPS estimate to $0.98 (from $1.05), and introduced an adjusted EPS estimate of $1.25 for fiscal 2016.