The firm made the downgrade based on market valuation while setting a $50 price target on the company's shares.
"We believe 3D Systems will be able to deliver within its revenue and earnings guidance. For 2014, we are projecting revenue of $701 million, in the mid-end of the company's guidance, and EPS of $0.77, slightly below the mid-end of the earnings guidance," said analysts.
Shares closed trading up 1.2% to $49.90 today.
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 unimpressive growth in net income, disappointing return on equity and premium valuation."