UPDATE: Berenberg Downgrades 3D Systems (DDD) to Hold Citing Risk/Reward
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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)."
Shares of 3D Systems closed at $36.10 yesterday.
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