Author Archives: Scalper1

What 3D Printer Rebound? Analysts Knock 3D Systems Despite Q4 Beat

Despite fourth-quarter earnings that beat expectations, 3D Systems ( DDD ) was hit by analyst reports saying that a rebound in its 3D printing business is not yet evident. On Monday, 3D Systems stock soared 25% to an eight-month high of 14.45 after the company posted  Q4 earnings  that topped Wall Street’s consensus estimate. But several analysts said that the stock took off due to short sellers buying the stock to cover their positions. 3D Systems stock was down 12%, near 12.50, in afternoon trading in the stock market today . 3D Systems’ Q4 earnings followed the March 3 Q4 earnings report from rival  Stratasys ( SSYS ), which also beat expectations, as did its guidance for 2016. The results from Stratasys and 3D Systems, the two biggest 3D printer companies, suggested that the field might finally be recovering from a rough couple of years. Analysts aren’t convinced. UBS analyst Steven Milunovich, in a research report Tuesday, maintained a sell rating on 3D Systems stock, with a price target of 9. “Management expects flattish revenue in 2016, citing poor visibility and unpredictable spending patterns,” Milunovich wrote. Weston Twigg, an analyst at Pacific Crest Securities, said in a research note that he expects low revenue growth from printers and materials in 2016. “Management believes industry conditions remain challenging, and it expects lots of volatility in quarter-to-quarter results,” Twigg wrote. He maintained a sector weight rating on 3D Systems stock. Among other ratings, JPMorgan downgraded 3D Systems to underweight but raised its price target to 10 from 9. Goldman Sachs maintained a neutral rating and price target of 10, while Jefferies maintained a hold and price target of 13.

Apple iPhone Demand ‘Tracking Ahead Of Expectations’

Apple ( AAPL ) stock rose Tuesday on a report from Morgan Stanley that iPhone sales this quarter are looking better than expected. Apple was up 2%, near 105, in afternoon trading on the stock market today . Morgan Stanley ( MS ) analyst Katy Huberty reiterated her overweight rating on Apple stock with a price target of 135. March-quarter iPhone demand is “tracking ahead of expectations,” she said in a report Tuesday. Based on Morgan Stanley analysis of sell-through data, Apple likely will sell 56.5 million iPhone units in the first quarter, she said. “This is clearly ahead of expectations as investors are skeptical Apple can reach implied guidance of 52 million,” Huberty said. China is the country with the strongest iPhone sales growth, based on Morgan Stanley’s tracker, she said. Apple’s next potential catalyst is its spring product-launch event on Monday. Apple is widely expected to unveil a new 4-inch smartphone, a smaller iPad Pro and new Apple Watch bands. Investors are most likely to focus on the rumored iPhone SE on Monday, S&P Capital IQ analyst Angelo Zino said in a report Tuesday. Apple’s new 4-inch smartphone will replace the iPhone 5S, which was released in September 2013. The new model is expected to sport an A9 chip, NFC technology to enable Apple Pay and a 12-megapixel, rear-facing camera. “We believe the device will be used as an opportunity for Apple to expand into lower cost emerging regions where the company has very low market share,” Zino said. “Given the saturation and slowing growth within the smartphone space and Apple’s already dominant position in the high-end market, we believe expanding its offerings to capitalize in higher growth regions will help support iPhone unit growth over the next 12-18 months. We see the potential of at least an additional 10-15 million in iPhone shipments (around 5% of total unit volume).” Zino has a positive rating on Apple stock with a 12-month price target of 130. On Monday, UBS analyst Steven Milunovich reiterated his buy rating on Apple stock and 12-month price target of 120.

5 Big-Name Medical Stocks Show Notable Chart Action

Loading the player… There’s a lot of news breaking in the medical sector today. Let’s take a look at five medical-related stocks with notable charts: Valeant Pharmaceuticals ( VRX ), Eli Lilly ( LLY ), Teva Pharmaceuticals ( TEVA ), Inogen ( INGN ) and Ligand Pharmaceuticals ( LGND ). Valeant Plunges On Results Valeant reported preliminary fourth-quarter earnings that missed expectations and slashed its guidance. The specialty drugmaker warned that it could potentially default if it doesn’t file its annual report by an April deadline. Valeant’s financials are under an ongoing review after a scandal broke out last fall. Shares plunged more than 50% in giant volume, hitting their lowest level in four years. The stock is now trading at 86% below its all-time high reached last August. Late-Stage Trial Change Hits Lilly Eli Lilly crumbled as much as 6% after announcing it’s changing the goal of the phase-three clinical trial for its Alzheimer’s treatment, signaling that the drug can only treat cognitive capabilities and not functional capabilities as well. The decline came in big turnover, and sent shares to a one-year low in intraday trade. Lilly is now 23% below its high reached in September. Teva’s Acquisition Delayed Teva Pharma’s $40.5 billion acquisition of Allergan’s generics unit has been delayed until June as it works to get regulators’ approval. Shares dropped more than 5% in intraday trade. Volume was heavy. Shares are now trading 14% below a consolidation buy point and 21% below their July high. Inogen Beats Views Inogen reported better-than-expected quarterly results on Tuesday. The company makes oxygen tanks for chronic respiratory conditions. The gap-up put shares above their 200-day line in intraday trade, but the stock was struggling to hold above that level as it pared some of its gains. Inogen was able to retake the 50-day line in Monday’s session. It’s now about 27% below its September peak. IBD 50’s Ligand Basing Meanwhile, IBD 50 stock Ligand Pharma is working on a double-bottom base with a potential buy point at 106.08. Shares are currently trading about 7% below the pivot.