The firm lowered its price target to $10.25 from $12 on shares of the Rock Hill, SC-based 3D printing company.
Piper Jaffray's second-quarter checks for 3D printers indicated that 3D Systems saw a "significant slowdown" in printer demand for the period, prompting the ratings downgrade, Barron's reports.
HP's (HPQ) Fusion Jet launch also is weighing on demand, Piper Jaffray noted.
"We believe the competitive landscape continues to intensify, channel relationships remain stressed and any cost cuts DDD can find will likely be offset by increased spending on R&D and Service/Support," the firm said.
About 7.15 million shares of 3D Systems traded hands today, well above the company's average trading volume of roughly 3.27 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
3D System's weaknesses include its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.
You can view the full analysis from the report here: DDD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.