Craig-Hallum downgrades Protolabs to Sell after ‘weak’ Q3 report

Craig-Hallum analyst Greg Palm downgraded Protolabs to Sell from Hold with a price target of $20, down from $42. The analyst says the company’s “weak” Q3 results and near-term outlook confirmed much of his recent fears around the business. The combination of a more challenging macro environment and increased competition is Protolabs’ hurting revenue growth and margins, Palm tells investors in a research note. He believes management commentary suggests “very little visibility” and is not confident in the company’s “ability to right size the ship, at least in the near term.” The stock in midday trading is down 26% to $26.29.