Gold prices steady ahead of Fed decision; weekly weakness noted
Tuesday, financial research firm Cantor Fitzgerald maintained a Neutral stock rating for Desktop Metal Inc. (NYSE:DM) with a consistent price target of $5.00. The firm’s analysts highlighted that Desktop Metal has recently pulled back its financial guidance, and as a result, many sell-side analysts have ceased publishing estimates for the company. According to InvestingPro data, the company’s overall financial health score is rated as WEAK, with particularly concerning metrics around profitability and cash flow management.
The analysts pointed out that Desktop Metal is likely to face continued challenges in hardware sales due to the difficult macroeconomic conditions. These insights are based on survey results which suggest a broader industry trend. Additionally, Desktop Metal’s strategy seems to be focused on conserving cash and managing the completion of a recent acquisition. InvestingPro analysis reveals the company is quickly burning through cash, with a concerning debt-to-equity ratio of 1.93.
For the upcoming quarterly report, due in 17 days, Cantor Fitzgerald is projecting a sequential revenue increase of 21%, although this represents a decline of approximately 16% compared to the same period last year. This anticipated growth follows three previous quarters where Desktop Metal saw sequential declines in top-line revenue, with recent data showing a 14.97% year-over-year revenue decline to $168.28 million.
The firm’s stance reflects cautiousness about Desktop Metal’s short-term performance amidst a broader context of economic headwinds that are affecting hardware sales in the sector. The analysts’ expectations set a tempered outlook for investors as Desktop Metal navigates through these industry challenges. For deeper insights into Desktop Metal’s financial health and future prospects, investors can access comprehensive analysis and 15 additional ProTips through InvestingPro’s detailed research reports.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.