Price Target = $56 Immediately … Longer Term, Much Lower
If you owned 3D Systems (NYSE:DDD) over the last year, congratulations, you did well. Obviously, when we wrote about DDD last year, we underestimated the amount of media hype and market momentum, as well as the unwavering bull market stampede of 2013. But during the past year, the 3D printing story has changed in decisive ways. Investors need to reassess this investment right now, based on current operational results and the competitive landscape.
It was just one week ago that Citron pointed out to the investment community how the bear thesis on BBRY was flawed. In contrast, this piece illustrates how the bull thesis on DDD is flawed beyond all measure.
Note: This is not a commentary about 3D printing or the additive manufacturing industry. It is a simple eye-opening report on how the numbers do not and can never make sense for this market darling. The bottom line is, if you really want investment exposure to this space, Citron suggests you consider Stratasys (NYSE:SSYS), or maybe even H-P.
Citron presents an irrefutable financial model that explains how unsupportable DDD’s current stock price is, to any analyst, CFO, or shareholder.