Credit Suisse downgraded the 3D printing company to "neutral" from "outperform," with a price target of $90. Credit Suisse said it believes there is a chance that 3D Systems' guidance for 2014 will be disappointing. The firm cited higher research and development costs from a recent Xerox (XRX) transaction, incremental sales, and high marketing expenses as possible reasons for a disappointing guidance.
Credit Suisse also cited the valuation of 3D printing competitor Stratasys (SSYS) in the downgrade for 3D Systems. In the same report, Credit Suisse upgraded Stratasys to "outperform" from "neutral," with a price target of $144.
TheStreet Ratings team rates 3D SYSTEMS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about its recommendation:
"We rate 3D SYSTEMS CORP (DDD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows: