3D Systems stock target cut to $2 at Craig-Hallum

Wednesday, Craig-Hallum analyst Greg Palm adjusted the price target for 3D Systems (NYSE:DDD) shares, reducing it to $2.00 from the previous $2.50, while keeping a Hold rating on the stock. The stock, currently trading at $1.89, has declined nearly 43% year-to-date. Palm’s remarks followed the company’s announcement of weaker-than-expected results, which were particularly surprising given the more positive outlook provided by management at the end of March. The shortfall was attributed to decreased activity in consumables and printers, with Palm noting a lack of visibility into the company’s future performance. The company’s revenue has declined by 8.09% over the last twelve months.

3D Systems’ management is reportedly focused on returning the business to profitability, with plans to implement an additional $20 million in cost reductions. These measures are expected to help the company reach profitability on a quarterly basis sometime in fiscal year 2026. InvestingPro analysis shows the company is quickly burning through cash, with negative EBITDA of $96.67 million. However, its current ratio of 2.79 indicates sufficient liquid assets to meet short-term obligations. Palm emphasized that this is a key objective for the company, alongside the need to address looming debt refinancing, which could alleviate some of the current pressure on the stock.

The analyst’s commentary highlighted the company’s need for improved execution before it can restore confidence among institutional investors. Despite the recognition of management’s efforts to steer the company towards profitability, Palm suggested that the market is adopting a cautious ’show-me’ stance towards 3D Systems’ stock, waiting for more tangible signs of progress before reassessing its potential. According to InvestingPro’s Fair Value analysis, the stock appears undervalued at current levels. Discover 10+ additional exclusive insights and detailed financial metrics with InvestingPro’s comprehensive research report, available along with analysis of 1,400+ other US stocks.

The reduction in the price target reflects the challenges 3D Systems is facing, as well as the broader uncertainty regarding its near-term growth prospects. Palm’s analysis indicates that the company’s stock will remain under close scrutiny as investors and analysts alike look for evidence of effective execution on its strategic initiatives and financial goals. Three analysts have recently revised their earnings estimates downward for the upcoming period, according to InvestingPro data.

In other recent news, 3D Systems Corporation reported its financial results for the first quarter of 2025, revealing a challenging period for the company. The earnings per share (EPS) came in at -$0.28, missing the forecasted -$0.14, while revenue fell short of expectations at $94.5 million compared to the anticipated $100.34 million. The company has also withdrawn its full-year 2025 guidance due to ongoing economic uncertainties. In response to these challenges, 3D Systems announced a cost reduction initiative targeting $70 million in savings by mid-2026. Analysts from Cantor Fitzgerald and Craig Hallum discussed these developments during the earnings call, highlighting the company’s focus on profitability at current revenue levels. Additionally, the company has completed the sale of its Geomagic asset portfolio, which added over $100 million to its cash reserves. Despite the current hurdles, 3D Systems remains committed to strategic investments in high-reliability markets such as aerospace and AI infrastructure.

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