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On Tuesday, JMP Securities reiterated its Market Outperform rating on Xometry Inc (NASDAQ:XMTR), maintaining a $40.00 price target. The firm’s analysts highlighted that Xometry’s shares have significantly underperformed the broader market year-to-date, recording a 48% decline while the S&P 500 and the Russell 3000 both fell by 10%. This underperformance was attributed to a broader risk-off sentiment among investors.
Despite the overall market trend and the moderation seen in key manufacturing indices such as the ISM’s manufacturing PMI, production, and new orders throughout the first quarter, JMP analysts observed improvements in industrial production and capacity utilization on a quarter-over-quarter basis. They anticipate that macroeconomic and industry conditions will be a central discussion point in the current earnings cycle, given the increased uncertainty surrounding tariffs. InvestingPro data reveals that Xometry has maintained strong revenue growth of 17.72% over the last twelve months, with a healthy current ratio of 4.38, indicating solid liquidity position.
The analysts at JMP Securities believe that Xometry could stand to benefit from the current tariff environment. They argue that as buyers seek to become more agile and manufacturers aim to optimize utilization in a challenging operating context, Xometry’s business model positions it well to capitalize on these trends. The company’s strategy of landing and expanding within larger accounts is expected to support its first-quarter estimates, especially as it continues to focus on securing larger clients.
Furthermore, JMP analysts mentioned the possibility that buyers may have accelerated their spending in anticipation of tariff announcements, which could continue into the second quarter following the U.S. administration’s 90-day tariff pause. As Xometry approaches its earnings report, scheduled for May 7th according to InvestingPro, the analysts expect that investors will be closely monitoring active buyer and spending trends, as well as seeking insights into the company’s gross profit of 39.53% and adjusted EBITDA margin expectations amid ongoing tariff volatility.
In conclusion, JMP Securities views the current valuation of Xometry shares as excessively penalized, presenting what they consider a compelling buying opportunity for investors. They base their $40 price target on an 8x enterprise value to estimated 2026 gross profit ratio. Based on comprehensive analysis from InvestingPro, Xometry currently trades near its Fair Value, with 7 analysts recently revising their earnings expectations downward for the upcoming period. Subscribers can access the full Pro Research Report for detailed insights into Xometry’s financial health, growth prospects, and valuation metrics.
In other recent news, Xometry Inc’s Q4 2024 earnings report exceeded expectations from Goldman Sachs and FactSet, showcasing robust performance and positive guidance for fiscal year 2025. The company anticipates over 20% growth in Marketplace revenue, supported by expansion efforts and a focus on the enterprise segment. Analysts from Goldman Sachs raised the stock’s price target to $30, maintaining a Buy rating, while Craig-Hallum increased their target to $35, also keeping a Buy rating. Craig-Hallum’s analyst expressed confidence in Xometry’s long-term growth, despite temporary challenges reflected in first-quarter guidance. Meanwhile, Cantor Fitzgerald adjusted their price target to $20 but maintained an Underweight rating, citing concerns over Xometry’s financial strategy and upcoming debt obligations.
JMP Securities maintained a Market Outperform rating with a $40 target, emphasizing Xometry’s growth potential in the B2B custom manufacturing market. Additionally, Xometry announced a change in its certifying accountant, appointing Deloitte & Touche LLP as the new independent registered public accounting firm, replacing KPMG LLP. The transition follows KPMG’s clean audit reports for 2023 and 2024, with no disagreements reported. These developments reflect the company’s dynamic position and strategic adjustments in the competitive manufacturing sector.
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