The firm said it lowered its rating and removed its $38 price target on the 3D printing company based on its believe that 3D Systems still has a number of operating issues to address.
"This may seem poorly timed given an already epic collapse in its EPS and stock. Maybe it will prove to be. Still, short term strides have been eclipsed by a litany of fresh issues, its own actions around guidance and its CFO departure are troubling, it is possible that by the time it straightens out its current issues the competitive environment is less favorable, and it is no longer a relative value in the 3D space. We simply see more opportunity elsewhere," the firm said in an analyst note.
Shares of 3D Systems are up by 1.40% to $22.40 at the start of trading on Thursday morning.
Separately, TheStreet Ratings team rates 3D SYSTEMS CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate 3D SYSTEMS CORP (DDD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."