3D Systems Corp (DDD)

[MisterEC]

3D Systems lower on post-earnings JPMorgan downgrade

Shares of 3D Systems (NYSE:DDD) are down 4.7% in premarket trading Tuesday after JPMorgan analyst Paul Coster downgraded the 3D printing technologist from Neutral to Underweight, saying that investors seem to be “pricing in unrealistic expectations of a V-shaped recovery.”

Despite the downgrade, Coster upped his price target on the stock to $10 (from $9), representing about 30% worth of downside from where the shares closed yesterday.

Coster argued that while 3D Systems’ Q4 results managed to blow out estimates on Monday, the expectations-bar was already set pretty low, making the 25% rally particularly excessive.

Coster downgraded close peer Stratasys last week on similar reasoning of a seemingly stretched valuation.