Shares of 3D Systems Corp. DDD, -11.75% tumbled 11% in afternoon trading Friday, after J.P. Morgan analyst Paul Coster turned bearish on the 3D printing company, citing an “unfavorable” risk-versus-reward profile at current prices. The stock has skyrocketed more than four-fold (up 329.7%) over the past three months, to close Thursday at the highest price since April 2015, while the S&P 500 SPX, -0.72% has gained 8.5%. Coster cut his rating to underweight from neutral, but raised his price target to $18, which is 37% below current levels, from $14. He said a strong rebound in the economy will raise activity levels in 3D printing, especially in the auto and aerospace markets, and in the elective surgery and dental markets once the pandemic passes, but he said that view is likely already priced into the stock. He also downgraded fellow 3D printer maker Stratasys Ltd. SSYS, -2.81% to underweight from neutral, and the stock fell 2.4% after closing Thursday at the highest price since July 2015.
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