3D Systems's (DDD) Consumer Exit Consistent with Turnaround Strategy - Needham & Company Cuts PT to $14
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Rating Summary:
8 Buy, 18 Hold, 6 Sell
Rating Trend: Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Needham & Company maintained a Buy rating on 3D Systems (NYSE: DDD), and cut the price target to $14.00 (from $15.00), following the company's announcement that it would discontinue its low-end Cube 3D printer and shut down its Cubify.com consumer platform. The move was expected, and is consistent with a turnaround strategy that will focus on the core professional/industrial segments of its business.
Analyst James Ricchiuti commented, "DDD is taking another step toward refocusing its business on the core opportunities in the professional and industrial 3D printing manufacturing markets with the announcement this week that it would discontinue its low-end Cube 3D printer and shut down its Cubify.com consumer platform. The move, which will result in a Q4 charge of $19-25M primarily related to inventory write-downs and related purchase commitments, is likely to be followed by cost actions in other adjacent areas of the business in which the company had been investing in recent years. We regard these initiatives as constructive and indicative of management’s commitment to improve earnings over the next year, although it will likely be 2017 before the full measure of these and other expected cost actions are realized."
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 $9.10 yesterday.
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