Over the last few months 3D printing companies, especially 3D Systems Corporation (NYSE:DDD), have experienced a rise in interest from the public as well as financial investors. However, recent data reveals negative trends in the 3D printing industry, with 9% of accounts receivable now past due over 90 days in tandem with a weak operating cash flow in 4Q13. Merrill Lynch analyst Wamsi Mohan is maintaining his SELL rating and lowering his price target from $65 to $60. Wamsi noted that, “the company’s latest 10-K filing shows the 3-D printer mix gravitating lower, with ASP printers seeing higher sales volume.”
Wamsi has had success recommending 3D Systems Corporation (DDD) in the past, so in this week’s Flashback Friday, let’s take a look at how Wamsi’s recommendations about 3D Systems Corporation (NYSE:DDD) performed as 3-D printing finds a place for itself in the market.
Continued from part one... Q1 hedge fund letters, conference, scoops etc Abrams and his team want to understand the fundamental economics of every opportunity because, "It is easy to tell what has been, and it is easy to tell what is today, but the biggest deal for the investor is to . . . SORRY! Read More
And at the end of February, Wamsi recommended SELL 3D Systems Corporation (NYSE:DDD), already seeing a positive return. Wamsi downgraded DDD from BUY to SELL noting, “topline growth coming at the expense of margin.” He added, “increased investments are seen as efforts to catch-up to competitors rather than growth drivers,” and he is skeptical of 3D Systems differentiation. Wamsi has already earned +18.0% over S&P-500.
Because 3-D printing is a relatively new medium, 3D Systems Corporation (NYSE:DDD) is adapting to demand and the growing culture surrounding the medium. Wamsi is also exploring this new company and so far has a 66% success rate recommending DDD, with only one loss from November 2013.
While 3D Systems Corporation (NYSE:DDD) continues to fluctuate as it settles into the market, continue following Wamsi to see how his recommendations fare. Be sure to download TipRanks today and start making informed decisions with advice you can trust.