3D System Shares Under Pressure Despite Bullish Comments From BB&T

Shares of 3D Systems are down another 5.3 percent to $52.41 in the face of some bullish comments from BB&T.

Analyst Holden Lewis is impressed by the company's financials. Management “continues to expect 30%+ organic growth and ~$1B in sales in 2015.” Lewis is forecasting $933.4 million, which is higher than the consensus estimates of $917.8 million.

Margins should also continue to rise “as faster growth from materials and software as well as margin gains from its service bureau assets offset mix shifts elsewhere,” said the analyst.

While the financial details of the Medical Modeling acquisition “are unlikely to be disclosed before the Q1'14 report,” the deal makes sense to Lewis. “14% of 3D Systems' sales are healthcare, but mostly outside-the-body applications” such as orthopedics, dental, and hearing, but the acquisition allows 3D to go inside the body “with software for imaging/modeling and printing capabilities for guides/implants.”

Lewis has a Buy rating on the stock.