3D Systems rises after BofA upgrade

Antonio Diaz | Getty Images. Shares of 3D Systems popped more than 10 percent after Bank of America Merrill Lynch upgraded the stock from "underperform" to "buy."·CNBC
Fred Imbert
Updated
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Shares of 3D Systems (NYSE: DDD) popped more than 10 percent Thursday, after Bank of America Merrill Lynch upgraded the stock from "underperform" to "buy."

Analysts at BofA cited three reasons for the upgrade: the corporate strategy of Vyomesh Joshi, the company's new chief executive officer; the "aligning of the cost structure with revenue growth to deliver improving profitability; and ... portfolio optimization to align the company for growth."

Joshi is a former Hewlett-Packard executive; the 3-D printing firm appointed him CEO on April 4

"The past several years of our negative stance have been predicated on the company's poor M&A strategy, choice of assets that did not have complete exposure to 3D printing, increasing investments in low margin areas like consumer (now exiting part of low end consumer) and an aggressive investment and channel strategy that led to a bloated cost structure and revenue headwinds," BofA analysts said.

3D Systems' stock has fallen over 37 percent in the last year but has gained 112 percent in 2016.

DDD this year



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