Needham analyst James Ricchiuti has maintained their neutral stance on DDD stock, giving a Hold rating today.
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James Ricchiuti has given his Hold rating due to a combination of factors, including the mixed performance in 3D Systems’ recent financial results. The company showed a sequential revenue growth of 8% when excluding revenues from the divested Geomagic software business, which is a positive sign. However, the overall year-over-year revenue declined by 16%, slightly missing the consensus estimate of a 15% decline.
The healthcare segment showed mixed results, with MedTech experiencing growth both quarterly and annually, but the dental orthodontics market continued to struggle. Additionally, the industrial business saw a significant year-over-year decline, though there was a quarterly improvement when excluding Geomagic. Despite these challenges, the company managed to exceed expectations in adjusted EBITDA due to better gross margins and effective cost control. These factors contribute to the Hold rating as they indicate potential for improvement but also highlight ongoing challenges.
In another report released today, Craig-Hallum also assigned a Hold rating to the stock with a $2.00 price target.