Shares of Stratasys (SSYS) and other 3D printer makers are climbing after research firm BB&T wrote that the company's MakerBot unit could generate growth greater than 25% through 2016, excluding the impact of acquisitions.
WHAT'S NEW: After visiting a store that sells products made by Stratasys unit MakerBot to retail customers and speaking with Stratasys' Chief Revenue Officer, BB&T analyst Holden Lewis wrote that there is still not significant demand for 3D printers from mainstream consumers. However, the industry is benefiting from a "deep well of demand" from other sources, including commercial entities, hobbyists, and schools, the analyst believes. As a result of demand from these individuals, Makerbot could easily generate growth of greater than 25%, excluding acquisitions, through 2016, the analyst forecast. Stratasys' chief revenue office, Frank Alfano, believes that the company can significantly increase its sales to the groups that are already buying the company's products in significant numbers. Moreover, Stratasys believes that its three existing stores are educating consumers about 3D printers, causing its sales to rise, although that process is in its very early stages, the analyst reported. Lewis kept a Buy rating on Stratasys.
WHAT'S NOTABLE: Although Autodesk (ADSK) plans to develop its own 3D printer, its product will be complementary to those of MakerBot in some cases and the printers will have different strengths, Lewis believes. Autodesk's entry into the market should not significantly hurt Stratasys, according to the analyst. PRICE ACTION:In mid-afternoon trading, Stratasys climbed $5.55, or 6.3% to $93.75. Other 3D printer makers also rose, with 3D Systems (DDD) gaining nearly 7% to $54.30, ExOne climbing 7.5% to $27.59, and Voxljet rising 5.3% to $13.69. Meanwhile, Autodesk rose 1.1% to $51.49.
Mvrgr.