Needham & Company Downgrades 3D Systems (DDD) to Hold

Needham & Company downgraded 3D Systems (NYSE: DDD) from Buy to Hold, saying shares may be pricing in too much.

Analyst James Ricchiuti commented, "We are lowering our rating on DDD to Hold from Buy. Shares are up over 110% Y/T/D (vs. flat for the Nasdaq) and are above our target price. With the stock trading at 32x our '17 EPS est., the market appears to be pricing healthy upside to estimates. A better-than expected Q4 helped allay concerns about further deterioration in the DDD’s financials. Additionally, the recent naming of Vyomesh (VJ) Joshi, one-time head of HP’s $26 billion printing business, as DDD’s new CEO has been well received by the market. Although EPS estimates could go higher for DDD, we believe increases over the next year are likely to be modest as DDD finds itself having to balance the need to restrain operating costs with having to maintain and possibly step up investments in key areas, including 3D metals printing and expanded vertical market focus."

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 $18.34 yesterday.

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