Cantor Fitzgerald lifts Xometry stock target to $20, keeps underweight

On Wednesday, Cantor Fitzgerald updated its assessment of Xometry Inc (NASDAQ:XMTR), increasing the price target to $20 from the previous $12, while still holding an Underweight rating on the company’s stock. The research firm’s analyst Troy Jensen cited several reasons for maintaining a cautious stance on the company, despite the revised price target. According to InvestingPro data, the stock has seen a significant -23.4% decline in the past week, though it maintains a 38.8% gain over the last six months.

Jensen pointed out Xometry’s significant involvement in prototyping applications as a potential concern, along with an upcoming debt payment or refinancing event that the company must address. The balance sheet analysis shows encouraging signs, with InvestingPro data indicating a strong current ratio of 4.38 and moderate debt-to-equity ratio of 0.94. The company operates with a moderate level of debt, while maintaining liquid assets that exceed short-term obligations.

The new 12-month price target of $20 is based on a 1.5 times enterprise value-to-sales (EV/Sales) multiple applied to the firm’s 2026 revenue estimate. This valuation reflects a careful analysis of the company’s financial outlook and market position. Current InvestingPro metrics show the company trading at a Price/Book multiple of 4.49, with analysts’ targets ranging from $12 to $46, suggesting significant market uncertainty about the stock’s fair value.

Xometry, which operates in the manufacturing industry providing on-demand manufacturing services, has been under scrutiny by analysts for its financial strategy and market risks. The updated price target suggests that while there is some potential for growth, there are significant factors that could limit the stock’s performance.

Investors and market watchers will be keeping a close eye on Xometry’s financial maneuvers, particularly how it manages its debt obligations and capitalizes on its market opportunities. The company’s future steps in refinancing and its ability to maintain a healthy balance sheet will be critical in determining its trajectory in the competitive manufacturing sector.

In other recent news, Xometry Inc. reported its fourth-quarter 2024 financial results, surpassing expectations with an earnings per share (EPS) of $0.06, significantly above the forecasted $0.0267. The company’s revenue also exceeded projections, reaching $148.55 million against an expected $146.33 million. Xometry highlighted a 16% year-over-year revenue growth, achieving a record marketplace gross margin of 34.5%. Despite these positive results, the company’s guidance for the first quarter suggests a temporary dip in gross margins due to investments in scaling operations across various geographies.

In analyst updates, Goldman Sachs raised its price target for Xometry to $30, maintaining a Buy rating, following the robust earnings report and positive forward guidance. Craig-Hallum also increased its price target to $35, emphasizing optimism about Xometry’s long-term growth potential and its ability to benefit from geopolitical trends like de-globalization and reshoring. Both firms express confidence in Xometry’s strategy to drive future growth through marketplace expansion and technological advancements. These developments reflect a strong belief in Xometry’s capacity to capitalize on emerging market trends and continue its growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.