Down 10.5% yesterday after reporting a gross margin decline with its Q1 results, 3D Systems (DDD +3.3%) is recovering some of its losses with the help of an upgrade to Buy from Gabelli, and a bullish coverage launch from Imperial Capital.
The gains come even though Citi, RBC, and Canaccord have slashed their PTs. Sell-side ratings for 3D remain largely bullish.
The company was questioned on its CC (transcript) about slowing U.S. growth (+19% Y/Y in Q1 vs. 66% for Europe and 97% for Asia-Pac). CEO Avi Reichental insisted 3D isn't seeing a U.S. market slowdown. He also predicted gross margin will rebound due to rising materials sales and improving services margins.
Shares currently go for 39x 2015E EPS, and 5.3x 2015E sales.