Lake Street Capital Markets analysts maintained a Buy rating and a $4 price target on 3D Systems (NYSE:DDD), citing improving prospects for the additive manufacturing sector despite lingering challenges.
The analysts noted that while the sector benefits from favorable tailwinds, broader economic concerns, including recessionary pressures and tight lending conditions, have extended longer than anticipated, causing delays in system purchase decisions. However, the analysts highlighted a more optimistic outlook for the industry, supported by expected interest rate cuts and the potential for a pro-U.S. manufacturing administration following the upcoming election.
These factors were seen as contributing to a progressively positive environment for additive manufacturing, reaffirming the Buy rating and $4 target as 3D Systems positions itself to capitalize on improving industry conditions.