William Blair analyst Brian Drab has maintained their neutral stance on DDD stock, giving a Hold rating on March 28.
Brian Drab has given his Hold rating due to a combination of factors impacting 3D Systems’ financial performance. The company’s fourth-quarter revenue saw a decline, primarily due to reduced printer sales, although there was some offset from modest growth in services revenue. The healthcare segment experienced a significant decrease in revenue, largely influenced by a change in accounting estimates related to the regenerative medicine program, which also affected the gross margin negatively.
Despite these challenges, there were positive signs in the industrial segment, which showed substantial growth driven by increased printer sales and services, particularly in aerospace and defense markets. The company has initiated a $50 million cost reduction plan aimed at improving gross margins and reducing operating expenses, with some early savings already realized. However, the adjusted EBITDA and loss per share figures fell short of consensus estimates, reflecting ongoing financial pressures. These mixed results contributed to the Hold rating, as the company is in a transitional phase with both challenges and potential opportunities ahead.
In another report released on March 28, Craig-Hallum also maintained a Hold rating on the stock with a $2.50 price target.