3D Systems Corporation Downgraded To Hold: Citi

3D Systems Corporation (NYSE:DDD) received a downgrade in rating to Hold from a Buy by Citigroup analysts in a research note sent to investors on June 11, 2014, according to a report from the TheFlyOnTheWall.com. The firm has set a price target of $50 on the stock.

Consensus rating of Hold

Another research firm, Gabelli, downgraded the stock from a Buy to a Hold rating and assigned a price target of $50 in a research note published on June 11, 2014. RBC Capital analysts have assigned an Outperform rating to the stock in their research note on June 11, 2014 and cut their target price to $64 from $78. Separately, analysts at Brean Capital have reduced their price target on 3D Systems Corporation (NYSE:DDD) from $84 to $75 in a research note to investors on June 6, 2014. They now have a Buy rating on the stock. 3D Systems presently has a consensus rating of Hold and an average target price of $69. Of those who have weighed in on the company recently, 16 analysts noted that their recent moves were valuation calls.

The company has seen rising short interest since the start of fiscal 2014, reaching over 33 million shares as of May 15. However, it declined more than 5% in the last two weeks of May, landing at about 31.5 million shares on May 30. At present, a little more than 30% of 3D Systems Corporation (NYSE:DDD) shares are sold short.

3D Systems ups guidance

In its recent earnings report, 3D Systems Corporation (NYSE:DDD) posted earnings of 15 cents per share, in line with the consensus estimate of 15 cents and less than the 21 cents EPS posted in the same quarter last year. Revenue for the company came in at $147.76 million for the quarter, compared to the consensus estimate of $145.5 million, an increase of 44% from the last year. On an average, analysts are forecasting 3D Systems to post 81 cents in earnings per share for the current fiscal year.

3D Systems Corporation (NYSE:DDD) shares escalated after management raised revenue guidance for fiscal year 2014 from a previous range of $680 million to $720 million to a new range of $695 million to $735 million. The company reiterated  its earnings per share estimates at a range of 73 cents to 85 cents per share. 3D Systems is looking forward to post twice its fiscal 2013 revenue in fiscal 2015, and its gross margin is expected to reach between 55% and 60% in that year.

On Thursday, 3D Systems Corporation (NYSE:DDD) shares closed down 2.04% at $48.88.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at amanjain@valuewalk.com