UPDATE: Berenberg Downgrades 3D Systems (DDD) to Hold Citing Risk/Reward

January 25, 2021 6:05 AM EST
Get Alerts DDD Hot Sheet
Price: $27.91 -6.97%

Rating Summary:
    7 Buy, 19 Hold, 5 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 15 | Down: 9 | New: 24
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(Updated - January 25, 2021 7:15 AM EST)

Berenberg analyst Kenneth Vallace downgraded 3D Systems (NYSE: DDD) from Buy to Hold with a price target of $30.00.

The analyst commented, "Risk/reward puts us on the sidelines for now; downgrade to Hold: In early January, DDD announced preliminary Q4 sales guidance 16% ahead of consensus estimates, leading us to increase our 2021-2022 estimates. Shares are now up ~500% since October 2020 (versus Russell 2000 up ~40%). At current levels, we think DDD shares are mostly pricing in the company's strong long-term growth prospects in healthcare as well as its transition to higher-margin end-to-end manufacturing solutions. As such, we increase our price target to $30 (from $9) using an equal-weighted blend of our EV/EBITDA multiple and DCF analysis. Our higher multiple now reflects growth potential more in line with 3D printing peers. With 13% potential downside, we downgrade DDD to Hold (from Buy)."

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 $36.10 yesterday.

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