It hasn't been a good few days for 3D Systems (DDD) . The stock is down 26% since the company reported earnings after the close on Tuesday, Oct. 31.
3D Systems saw revenues decline 2.2% year-over-year and reported a per-share loss of 20 cents. Both results missed analysts' expectations, with consensus expectations actually calling for a per-share profit of 12 cents for the quarter.
There's no nice way to spin this: 3D Systems whiffed, big time.
That's why it's really no surprise the stock has caught several downgrades since reporting. As of Thursday's close, shares were down 3.81%, to $9.09. While that may seem like a bargain to some, it certainly isn't to FBR Capital analyst Christopher Van Horn.
Van Horn downgraded the stock to neutral from buy and slashed his price target to $7 from $18. The new target would imply more than 23% downside from current levels, despite the massive fall 3D Systems has already experienced.
The analyst cited an increasingly competitive operating environment, which should weigh on 3D Systems' ability to grow revenues. The quarter's year-over-year decline adds merit to this take. 3D Systems' earnings miss also highlights concerns going forward. Taking clues from the report, Van Horn also cut his rating on Stratasys (SSYS) to neutral from buy and lowered his price target to $30 from $33.
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Van Horn wasn't alone on the downgrade front. Stifel analyst Patrick Newton cut his target on 3D Systems to $11 from $15, while Bank of America/Merrill Lynch analyst Wamsi Mohan cut his target in half to $10 from $20.
Loop Capital analysts lowered their price target to $10 from $20 and Piper Jaffray's Troy Jenson lowered his target to $10 from $14 while downgrading the stock to underweight. He cites competitive pressure from HP (HPQ) being an issue.
Shares are now down 44% over the past six months and 60% from its May highs.
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