Shares of 3D Systems Inc. fell more than 6% in premarket trade Tuesday after J.P. Morgan downgraded the stock to underweight and said the stock’s rally this year has been “excessive” given the lack of clear demand and decline in printer sales last quarter. On Monday, the company reported lower quarterly sales and earnings, though both numbers trumped Wall Street expectations as the company benefitted from new industrial clients in the healthcare industry. Its shares rallied 25% on Monday, marking the company’s best one-day percentage gain in five years. However, J.P. Morgan analyst Paul Coster, who raised his price target on the stock to $10 from $9 on Tuesday, said he believes the stock “overreacted positively” on Monday, primarily owing to a short squeeze.
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