3D Systems (DDD) Numbers Cut at Needham & Company But 'Tone of Business is Improving'

Needham & Company analyst James Ricchiuti cut estimates and his price target on 3D Systems (NYSE: DDD) to $28.00 (from $32.00) following Q1 results but said the tone of the business is improving and therefore maintained a Buy rating.

Ricchiuti commented, "Q1 results were essentially in line with DDD's preannouncement last month. Mgmt's decision to withdraw its 2015 guidance clearly fed into the selling pressure in the stock. Based on data points in the quarter and call, we believe Q2 will be modestly better than Q1. While we are taking our full-year estimate down again, we are conservatively assuming normal seasonality in DDD's business, when indications are that there will be a stronger seasonal pickup in the 2H. We think the reset to Street numbers will put DDD in a position to meet and possibly exceed estimates as the year progresses. While that alone may not be a catalyst for the stock in the near term given how negative sentiment is for this group and in particular for DDD, we believe the shares offer an attractive risk-reward at current levels."

The firm cut FY 2015 EPS from $0.60 to $0.50 and FY 2016 EPS from $1.10 to $1.00.

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 $24.21 yesterday.

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