JPMorgan Downgrades 3D Systems (DDD) to Underweight on Valuation

January 15, 2021 4:13 AM EST
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Price: $27.77 +3.89%

Rating Summary:
    8 Buy, 18 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 18 | Down: 11 | New: 19
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(Updated - January 15, 2021 5:23 AM EST)

JPMorgan analyst Paul Coster downgraded 3D Systems (NYSE: DDD) from Neutral to Underweight with a price target of $18.00 (from $14.00).

The analyst comments "We are downgrading DDD and SSYS to Underweight based on valuation, though we are raising our price targets for both stocks in recognition of the higher multiples across our coverage universe. DDD is up 200% YTD, SSYS up 36% (S&P500 up 1%), and though neither stock looks expensive relative to recently IPO’d DM on a P/S basis, we do think risk-reward tilts unfavorable here, given that we do not believe 3D Printing/Additive Manufacturing has suddenly hit an inflection point. We do think demand will improve with a post-pandemic recovery, and niche markets are opening up for these companies incrementally, but we expect growth to trend in the 5 - 10% CAGR range moving forward, not high enough to justify an aggressive re-rating, not yet."

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 $32.01 yesterday.

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