Will This Price Target Cut Hurt 3D Systems (DDD) Stock Today?

Story updated at 10 a.m. to reflect market activity.

NEW YORK (TheStreet) -- UBS (UBS) cut its price target for 3D Systems (DDD) to $47 from $62 Wednesday.

3D Systems gained 3.1% to $46.20 in morning trading.

The firm reiterated its "neutral" rating for the 3D printer maker. The price target cut is a valuation call according to UBS analysts Steven Milunovich and Peter Christiansen.

"The almost 10% stock price decline following earnings appears a bit strong in reaction to the decline in printer gross margin and the perception that operating leverage improvement is delayed," the analysts wrote. "We expect the printer margin to bounce back as the decline is attributable to ramp up costs of the 24 new products introduced rather than to price pressure. The gross margin should tick up sequentially through the year. In addition, management notes its views on operating leverage have not changed, with a step change in 2015 and full realization in 2016 on the way to a 30% operating margin target."

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Separately, TheStreet Ratings team rates 3D SYSTEMS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate 3D SYSTEMS CORP (DDD) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and weak operating cash flow."

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