3D Printing Stocks Crater as Piper Jaffray Q2 Survey Was 'Poorest in Recent Memory' (DDD) (SSYS)

3D printing stocks are getting crushed Monday after Piper Jaffray analyst Troy Jensen published results of a survey that showed system demand is more challenging than ever. The analyst downgraded both 3D Systems (NYSE: DDD) and Stratasys (NASDAQ: SSYS) as a result.

"Following Q2 checks, we believe system demand was significantly below plan for both 3D Systems and Stratasys in the June quarter, and anticipate Q2 and 2H results will come in below consensus expectations," Jensen said. "We believe the main reason for the slowdown was sustained weakness for prototyping-focused machines compounded with the launch of HP's Fusion Jet and Carbon 3D's M1 platforms in Q2."

They believe several customers have and will likely continue to pause purchasing to assess these new offerings. In addition, they believe several existing DDD and SSYS resellers are likely to partner with HP, which will likely distract channels and stress relationships.

"Our 2Q16 survey results were the poorest we have seen in recent memory, and given the internal challenges both Stratasys and 3D Systems have, we have become more cautious on both companies and have downgraded SSYS to Neutral and DDD to Underweight," the analyst concluded.

DDD is down 8.5% to $13.46 and SSYS is down 9.9% to $20.99.

Elsewhere in the sector, Voxeljet AG (NYSE: VJET) is down 0.9%, ExOne (NASDAQ: XONE) is down 1.5% and Materialise NV (NASDAQ: MTLS) is up 1%.

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