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3D Systems (DDD) Cut to 'Underweight' at JPMorgan After Short Squeeze Sends Shares Flying Higher

March 15, 2016 6:50 AM EDT
Get Alerts DDD Hot Sheet
Price: $4.45 --0%

Rating Summary:
    8 Buy, 18 Hold, 6 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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(Updated - March 15, 2016 8:27 AM EDT)

JPMorgan downgraded 3D Systems (NYSE: DDD) from Neutral to Underweight with a price target of $10.00 (from $9.00). Analyst Paul Coster said the stock overreacted positively following Q4 results due to a short squeeze.

"We believe the stock overreacted positively yesterday (up ~25% vs. S&P flattish) primarily owing to a short squeeze, and we think much like near peer SSYS, investors are pricing in unrealistic expectations of a V-shaped recovery," said Coster.

The analyst added, "We downgrade DDD to Underweight on valuation, and we think the stock’s ~68% YTD performance (S&P down 1.8%) is a bit excessive given no clear signal end market demand is sharply rebounding (SSYS FY16 Outlook calls for 3% growth/DDD expects flat to slightly up), leaving minimal margin for error for this execution story."

For an analyst ratings summary and ratings history on 3D Systems click here. For more ratings news on 3D Systems click here.

Shares of 3D Systems closed at $14.45 yesterday.



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