3D Printing Stocks Downgraded – Stock Analysts Feel 3D Printing Stocks are Overvalued

At Bank Of America, The analysts wrote, “We are downgrading shares of 3D Systems to Underperform with a PO of $65 for the following reasons (1) Organic growth rate peaking in 2014 and incremental topline growth will come at the expense of margins, (2) We view the increased investments as a catchup in spend necessary to stay competitive rather than driving incremental growth, (3) A lot of the M&A while additive to near term growth, in our opinion, will result in diluting LT organic growth and adds integration and execution risk in the interim, (4) A lot of high profile partnerships sound exciting (Motorola Mobility, Hasbro, Hershey’s etc.) but success will be predicated on widespread adoption and margin performance driven by such ventures will likely be challenged.” William Dante, of the Association of 3D Printing feels that: “3D Printing Marketing is still an issue, and those firms who can market and sell will be the eventual winners.”
3D Systems (NYSE:DDD) opened at 80.74 on Monday. 3D Systems has a 1-year low of $27.88 and a 1-year high of $97.28. The stock’s 50-day moving average is $81.10 and its 200-day moving average is $67.56. The company has a market cap of $8.298 billion and a price-to-earnings ratio of 174.76.

Several other analysts have also recently commented on the stock. Analysts at Citigroup Inc. set a $78.00 price target on shares of 3D Systems in a research note on Wednesday, February 12th. Separately, analysts at Zacks downgraded shares of 3D Systems from a “neutral” rating to an “underperform” rating in a research note on Monday, February 10th. They now have a $64.40 price target on the stock. Finally, analysts at William Blair reiterated an “underperform” rating on shares of 3D Systems in a research note on Thursday, February 6th. Three analysts have rated the stock with a sell rating, four have given a hold rating and eleven have given a buy rating to the company. 3D Systems has an average rating of “Hold” and an average target price of $86.24.

3D Systems Corporation (NYSE:DDD) is a holding company that operates through subsidiaries in the United States, Europe and the Asia-Pacific region.