NEW YORK (TheStreet) -- Shares of 3D Systems Corp (DDD) are declining, lower by 1.72% to $35.42 in early market trading Thursday, after the company had its price target lowered to $42 from $46 with a "buy" rating by analysts at Jefferies this morning.
Analysts at the firm cited the growing number of new 3D printing players in the field including HP (HPQ) , Autodesk (ADSK) , XYZprinting, IPG Photonics (IPGP) , Canon (CAJ) , Epson (SEKEY) , and Ricoh (RICOY) .
Jefferies analysts believe 3D Systems will likely lower its prices amid new competition.
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The firm said it sees 3D Systems as the most exposed to new entrants, but sees little overall impact for the next two years.
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 a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- DDD's revenue growth has slightly outpaced the industry average of 13.8%. Since the same quarter one year prior, revenues rose by 23.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- DDD's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.11, which clearly demonstrates the ability to cover short-term cash needs.
- 47.84% is the gross profit margin for 3D SYSTEMS CORP which we consider to be strong. Regardless of DDD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DDD's net profit margin of 1.84% is significantly lower than the industry average.
- Net operating cash flow has significantly decreased to $8.57 million or 72.92% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.26%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 82.35% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, DDD is still more expensive than most of the other companies in its industry.
- You can view the full analysis from the report here: DDD Ratings Report