Needham & Company analyst James Ricchiuti cut estimates and its price target on 3D Systems (NYSE: DDD) from $88 to $70 following Q1 results but maintained a Buy rating.

Ricchiuti commented, "Q1 revenues increased a stronger-than-expected 45% y/o/y (28% organic). As expected, product mix, increased investment in R&D and higher sales & marketing resulted in margin compression, resulting in EPS merely meeting consensus expectations. Mgmt reaffirmed its full-year guidance for rev growth of 33%-40%, disappointing investors who were looking for a higher guide. DDD shares fell 8%, reflecting just how negative sentiment has become on the sector, as evidenced by the significant compression in multiples. We are maintaining our Buy rating, based on the robust growth trajectory we anticipate for DDD over the next 2-3 years and as leverage returns to the model in 2015."

FY 2014 EPS goes from $0.77 to $0.78 and FY 2015 EPS goes from $1.35 to $1.25.

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Shares of 3D Systems closed at $44.80 yesterday.