Sell-Side Analyst Likes 3D Systems' New CEO

Pacific Crest Securities recently released a company note on 3D Systems Corporation DDD after the company hired Vyomesh Joshi as CEO. Joshi comes to the company with years of experience in technology, with traditional printer experience working and leading teams at HP Inc HPQ.

Weston Twigg and Daniel Baksht, analysts at Pacific Crest, wrote, "We think this could be a good long-term hire, as VJ has a good reputation and is well-liked on the Street."

They continued, "Over the long term, it's too early to tell whether Mr. Joshi will be the right fit or if he will be able to fix 3D Systems, but we view this as a step in the right direction. In the meantime, we remain on the sidelines with DDD until we see evidence of faster product innovation and more efficient operations."

Related Link: 3D Systems Names New CEO: Meet Vyomesh Joshi

Key Risk To New CEO

Analysts at Pacific Crest gave one key risk of 3D Systems' new CEO hire: transition.

The analysts noted that 3D Systems is committed to driving innovation in their products which may be slowed with the change in management as the new CEO gets accustomed to his role in the 3D printing industry, having no prior experience in the sector. However, analysts believe that with sizable consumer contacts made in his days at HP, Joshi can drive revenue and margin growth for 3D Systems as the company works to lower operating costs and increase business efficiency.

3D Systems was down roughly 1 percent early Tuesday, trading at $15.67.