Benchmark maintains buy on Proto Labs stock, target at $45

Published 05/05/2025, 16:02
Benchmark maintains buy on Proto Labs stock, target at $45

On Monday, Benchmark analysts maintained their Buy rating and $45.00 price target for Proto Labs (NYSE:PRLB) shares. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.13 and holds more cash than debt on its balance sheet. The decision followed Proto Labs’ release of its first-quarter financial results for the year 2025, which surpassed expectations. The company announced revenues of $126.2 million, a slight decrease of 1.3% from the first quarter of 2024, and an adjusted earnings per share (EPS) of $0.33, down from $0.40 the previous year. These figures beat Benchmark’s estimates, which predicted a 3.2% decline in revenues to $123.8 million and an adjusted EPS of $0.30. The stock has shown strong momentum, with InvestingPro reporting an impressive 23.35% return over the past year.

Proto Labs’ revenue for the quarter was boosted by a significant 10% increase in Network sales and a 2.5% rise in average revenue per customer. The company has been actively expanding its service offerings, which contributed to the growth in revenue per customer.

Looking ahead, the management of Proto Labs provided guidance for the second quarter of 2025, projecting revenues in the range of $124 million to $132 million. This forecast is in line with the $125.3 million reported in the second quarter of 2024. The company also anticipates adjusted earnings to be between $0.30 and $0.38 per share, which would be comparable to the $0.38 adjusted EPS reported in the same quarter of the previous year.

Benchmark’s analysts cited the solid performance in the first quarter as the reason for maintaining their Buy rating and $45 price target on Proto Labs stock. While the company trades at a relatively high P/E ratio of 63.44, InvestingPro analysis suggests the stock is currently undervalued, with 11 additional exclusive ProTips available for subscribers. The company’s ability to outperform revenue and earnings expectations set a positive tone for its stock valuation.

In other recent news, Proto Labs Inc . reported its first-quarter 2025 financial results, revealing revenue of $126.2 million, which exceeded analyst expectations of $124.51 million. However, the company’s earnings per share (EPS) came in slightly below forecasts at $0.33, compared to the anticipated $0.34. Despite this minor EPS miss, the company demonstrated strong performance in its aerospace and defense sectors and continued to invest in manufacturing capabilities. Proto Labs also provided guidance for the second quarter of 2025, projecting revenue between $124 million and $132 million and non-GAAP EPS between $0.30 and $0.38. The company has focused on expanding its production capabilities and has seen growth in customer engagement with its production offerings. Analysts from firms such as William Blair and Craig Hallum Capital Group have noted the company’s adaptability in the current economic environment, particularly in addressing supply chain challenges. Proto Labs’ strategic investments and operational efficiencies position it well to capitalize on emerging opportunities and create long-term value for shareholders.

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