In the report, the firm, most well known for its short-selling ideas, set a near-term price target for 3D Systems at $56. Citron cites two recent earning reports from 3D Systems that missed analyst estimates.
The 3D printing company is set to report another quarter with marginal profits, Citron says. It uses a quote from CEO Avi Reichental to support the statement. At the Needham Investment Conference in January, Reichental said, "[W]e're absolutely willing to tolerate temporary earnings compression and even a slight margin compression during this period of substantially accelerated growth rate and market share expansion."
Citron also compares 3D Systems to competitor Statasys (SSYS), which owns Makerbot. The firm points out that Makerbot 3D printers have more reviews on Amazon (AMZN), and generally receive higher ratings.
TheStreet Ratings team rates 3D SYSTEMS CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their 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."