Piper Jaffray Downgrades 3D Systems (DDD) to Underweight; More Downside Ahead

Piper Jaffray downgraded 3D Systems (NYSE: DDD) from Neutral to Underweight with a price target of $21.00 (from $32.00) following the company's Q1 warning last week. The analyst belives the company will have to materially cut full year guidance and they believe the magnitude of this cut is not fully reflected in the current stock price.

Analyst Troy Jensen commented, "3D Systems released 1Q 2015 preliminary results with both revenue and EPS coming in well below consensus estimates, which was largely affected by challenging macros, FX headwinds, weak printer demand, and continued poor channel management. After the poor Q1 results, we believe the company will have to materially cut full year guidance and believe the magnitude of this cut is not fully reflected in the current stock price. We believe 3D Systems’ issues are bigger than the company is communicating and anticipate pending competition will prevent the company from rebounding from this depressed competitive state. As a result of our concerns for DDD’s recovery, we are lowering our rating from Neutral to Underweight and cutting our price target to $21 from $32"

The analyst cut FY 2015 EPS from $0.85 to $0.43 and FY 2016 EPS from $1.20 to $0.81.

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 $27.23 yesterday.

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