Roth Capital Cuts Cimatron Price Target Following 3D Systems’ Acquisition
Roth Capital analyst Richard Baldry maintained a Buy rating on Cimatron (NASDAQ:CIMT) with a $8.97 price target, following the news that Cimatron’s management and Board have agreed to an all cash acquisition by 3D Systems Corporation (NYSE:DDD) for $8.97.
Baldry noted, “Representing a nearly 50% premium over CIMT’s prior closing price, we view the offer as fair given a slow growth rate for CIMT and limited prospects to accelerate growth in a fairly mature industry segment.”
The analyst added, “We do not expect another bidder to emerge given CIMT’s small scale (run-rate revenues are less than $45M annually) and narrow focus on commercial 3D manufacturing software systems. As such, we are lowering our target price to $8.97 to reflect the acquisition offer price. While we recognize that this price target does not have enough upside for a Buy rating, we are maintaining our Buy rating. Risk factors to achieving our price target include manufacturing sector dependence and economic-driven volatility, acquisition integration risks, and sentiment volatility related to 3D printing. Near-term a new risk now exists that CIMT’s announced acquisition by 3D Systems could fail to close and result in shares retreating closer to their pre-announcement trading levels in the $6.00 range.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Richard Baldry has a total average return of 7.9% and a 56.0% success rate. Baldry has a -8.9% average return when recommending CIMT, and is ranked #1027 out of 3377 analysts.