Oppenheimer analyst Holden Lewis came out today with his views on 3D Systems Corporation (NYSE:DDD), after the company reported disappointing preliminary results for first-quarter, posting revenue of $158-$160 million and adjusted EPS of $0.02-$0.04, compared to Lewis’ estimates of $191.8 million and $0.19 respectively.

Lewis wrote, “At lower estimates the multiple is not the catalyst it once was, and management credibility is shot. Yet, conditions for leverage are being established, and while sales growth is hugely disappointing, it is likely unsustainably low amid industry trends. In effect, while the original thesis was undermined by sales growth, a new “trough EPS” thesis is now in place. If, in fact, 1H15 represents a trough in sales/EPS growth, shares will likely be able to regain their footing.”

Bottom line: “Valuation is no longer a virtue, and positives are undermined by eroding growth. But as growth “normalizes,” potential for fast EPS recovery is great. It is a better long- than short-term story given the need for reputational repair. But we believe potential exceeds risk.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Holden Lewis has a total average return of -8.1% and a 35.3% success rate. Lewis has a -23.8% average return when recommending DDD, and is ranked #3306 out of 3581 analysts.

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