An analyst from Bank of America Merrill Lynch (BAML) reduced his price target for the shares of 3D Systems Corporation (NYSE:DDD) to $60 from $65 per share, and maintained his Underperform rating for the stock.
The stock price of 3D Systems Corporation (NYSE:DDD) is trading around $61.75 per share, down by 0.58% at the time of this writing around 11:27 in the morning, Eastern Time.
According to BAML analyst Wamsi Mohan, the main reason for reducing his price target for the 3D printing company is because of lower confidence on its long-term model. Mohan said the latest 10-K filing of 3D Systems Corporation (NYSE:DDD) showed that its 3D printer mix is gravitating with lower ASP printers to increase sales volume.
Mohan emphasized that 3D Systems Corporation (NYSE:DDD) will experience lower attach rate for materials versus production printers over time due to its move towards lower ASP printers.
Barron’s warns stock overvalued
A recent article entitled “Beware 3-D Printing” published by Barron’s suggested that the shares of 3D Systems Corporation (NYSE:DDD) seemed overvalued based on earnings and sales metrics. Barron’s projected that the stock price of the 3D printing company could fall as much as 80%. Even if it the stock falls that much, the article suggested that the stock will still be overvalued.
Despite the bearish conviction of analysts for 3D Systems Corporation (NYSE:DDD), TheStreet Ratings team recommended a Buy rating for the stock citing several positive factors such as robust revenue growth, solid financial position with reasonable debt levels by most measures, earnings per share growth, compelling net income growth, and good cash flow from operations.
The StreetRatings team believes that these positive factors have a greater impact than the observed weaknesses by some analysts.
A separate report from Stephens cited the top-line growth, commercial and industrial offerings, and upcoming product launches of 3D Systems Corporation (NYSE:DDD) as the reason for upgrading the stock from to Overweight with a $77 price target.
3D Systems financial performance
During the fourth quarter of 2013, 3D Systems Corporation (NYSE:DDD) reported that its revenue climbed by 54% to $154.8 million and its non-GAAP earnings were $0.19 per share as a result of a 34% overall organic growth in revenue.