Needham & Company Cut Price Target on 3D Systems (DDD) Ahead of 2Q Results

Needham & Company reiterated a Buy rating on 3D Systems (NYSE: DDD), and cut the price target to $22.00 (from $28.00), ahead of 2Q earnings release. Analyst James Ricchiuti believes another downward revision to Street revenue estimates is priced into DDD's shares. DDD is scheduled to resales 2Q results before the market opens on August 6th.

Ricchiuti commented, "We are lowering our 2H and 2016 estimates ahead of DDD's Q2 release on Thursday (before the market open). While DDD may be further along with cost-containment actions than competitor Stratasys (SSYS, Buy), we acknowledge that our rev estimates for 2015-2016 are probably still too aggressive, particularly given the sluggish industry environment. That said, we believe another downward revision to Street revenue estimates is priced into DDD's shares. We believe the risk of significant downside to EPS estimates is somewhat mitigated by the cost actions DDD has taken and by the potential for a more profitable mix of business, including high-margin software revenue. We maintain our Buy rating while acknowledging the significant damage to investor sentiment in the group and to DDD in particular."

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 $13.16 yesterday.

You May Also Be Interested In

• Day One Biopharmaceuticals (DAWN) PT Raised to $38 at Jones Trading on OJEMDA approval, sees $900M peak sales
• Summit Insights Downgrades Silicon Labs (SLAB) to Hold, 'expect its stock to be an inline performer'
• Amphenol (APH) Tops Q1 EPS by 7c, offers guidance