Goldman Sachs raises Xometry stock price target to $30, maintains buy

On Wednesday, Goldman Sachs analyst Eric Sheridan updated the firm’s stance on Xometry Inc (NASDAQ:XMTR), raising the price target to $30.00 from $28.00, while reiterating a Buy rating on the shares. According to InvestingPro data, the stock has seen significant volatility, with a 38.8% gain over the past six months despite a recent 23.4% decline in the past week. The revision follows Xometry’s release of its Q4 2024 earnings report, which showcased a robust performance exceeding Goldman Sachs and FactSet Street estimates. The company’s forward-looking guidance for fiscal year 2025 also remains positive, with Marketplace revenue growth staying healthy at over 20%. This growth is supported by management’s focus on the enterprise segment, the expansion of buyer and supplier networks, the broadening of the marketplace menu, and the international scope of the platform.

Sheridan highlighted that while gross margins are expected to be influenced by investments in the first quarter, management is confident about a return to regular Marketplace gross margin expansion in the second quarter and beyond. The company’s current gross profit margin stands at 39.5%, according to InvestingPro data, which shows the company operates with a moderate level of debt and maintains strong liquidity with a current ratio of 4.38. Xometry has also provided guidance for a positive adjusted EBITDA for FY25, despite anticipating a temporary dip in the first quarter due to investments aimed at scaling operations across different geographies. Furthermore, management has indicated a 20%+ incremental adjusted EBITDA margin in the coming years as the company moves towards a $1 billion revenue target.

The company’s earnings report emphasized the significant impact of artificial intelligence on both internal and external aspects of the platform, as Xometry continues to focus on elements of technology that disrupt the wider manufacturing supply chain. According to Sheridan, the near-term discussion is expected to revolve around the trajectory and balance of growth versus incremental margins, as Xometry remains committed to investing in long-term opportunities.

Goldman Sachs’ revised price target of $30 reflects updated operating estimates based on Xometry’s latest earnings report and the management’s forward-looking statements. With analyst targets ranging from $12 to $48, and revenue growth forecast at 17% for FY2025, investors seeking deeper insights can access comprehensive valuation metrics and 10+ additional ProTips through InvestingPro’s detailed research reports.

In other recent news, Xometry Inc. reported its fourth-quarter 2024 financial results, exceeding expectations with an earnings per share (EPS) of $0.06, significantly above the forecasted $0.0267. The company’s revenue also surpassed projections, reaching $148.55 million against an anticipated $146.33 million. Xometry’s revenue grew by 16% year-over-year, with marketplace revenue rising by 20% to $135 million. Despite the positive earnings report, the company’s stock price experienced a decline, which may reflect broader market conditions or sector-specific concerns.

The company achieved a record marketplace gross margin of 34.5%, up 320 basis points from the previous year. Active buyers increased by 23% year-over-year, totaling 68,267. In terms of future prospects, Xometry anticipates at least 20% marketplace growth per quarter in 2025. Analyst firms have not provided any recent upgrades or downgrades for Xometry.

Xometry’s international expansion efforts have been noteworthy, with international revenue contributing 18% to total marketplace revenue and growing by 42% year-over-year. The company is focusing on enhancing its AI capabilities and expanding its international presence to drive future growth. These developments highlight Xometry’s strategic initiatives and operational performance in the recent quarter.

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