Goldman Sachs downgrades Xometry stock to Neutral after 124% rally

Published 16/10/2025, 07:42
Goldman Sachs downgrades Xometry stock to Neutral after 124% rally

Investing.com - Goldman Sachs downgraded Xometry Inc (NASDAQ:XMTR) from Buy to Neutral while raising its price target to $49.00 from $42.00 on Thursday. The manufacturing marketplace platform, currently trading at $48.69 with a market capitalization of $2.47 billion, has shown remarkable momentum according to InvestingPro data.

The investment bank cited the manufacturing marketplace platform’s recent strong stock performance as a key factor in the rating change, noting shares have surged 124% over the past six months compared to the S&P 500’s 23% gain during the same period.

Goldman Sachs analyst Eric Sheridan pointed out that XMTR shares now trade toward the high end of their ranges since 2023 on enterprise value-to-revenue and enterprise value-to-gross profit metrics.

The firm’s refreshed valuation on updated estimates resulted in a 12-month forward price target of $49, representing only 2% upside from current levels, with what Goldman described as "a more balanced set of outcomes between upside and downside node analysis relative to other SMID-cap companies."

Since being added to Goldman’s Buy list on January 6, 2022, Xometry stock has declined 10% compared to the S&P 500’s 41% gain, with underperformance likely driven by "a combination of macro volatility and investor preference for large-cap stocks," according to the research note.

In other recent news, Xometry, Inc. has reported better-than-expected second-quarter financial results, with revenue, gross margin, and EBITDA surpassing analyst expectations. The company’s marketplace revenue grew by 26% year-over-year, exceeding management’s guidance of 20-22%, showing robust performance across U.S. enterprises and international markets. Following these results, several firms have adjusted their price targets for Xometry. JPMorgan increased its target to $55, citing strong marketplace growth, while Citizens JMP raised its target to $50, noting that the revenue and EBITDA exceeded guidance by $5.5 million and $1.9 million, respectively. UBS also raised its target to $40 from $35, maintaining a Neutral rating due to the strong second-quarter performance. Additionally, Xometry launched a new Workcenter Mobile App for its manufacturing partners, enhancing job management and production workflows on mobile devices. Citizens JMP continues to maintain a Market Outperform rating, emphasizing the role of artificial intelligence as a key growth driver, as revealed by Xometry’s Manufacturing Outlook survey.

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