JMP Securities keeps Xometry stock at Market Outperform, $42 target

On Tuesday, JMP Securities maintained a positive stance on Xometry Inc (NASDAQ:XMTR), reiterating a Market Outperform rating with a $42.00 price target. The firm's analyst, Nicholas Jones, highlighted Xometry's significant achievement in the Asia-Pacific (APAC) region, securing its first seven-figure order during the third quarter. This milestone is expected to balance any potential shortfall in the growth of active buyers. The company has shown strong momentum with revenue growth of 21.19% in the last twelve months, and InvestingPro data shows 5 analysts have revised their earnings upward for the upcoming period.

Jones noted that despite the less-than-anticipated increase in active buyers, there would be no immediate changes to their financial projections. JMP Securities prefers to wait for further insights from the company's management before revising their 2025 estimates. The investment firm's analysis of third-party data supports this decision. According to InvestingPro analysis, Xometry maintains a healthy financial position with a current ratio of 4.59, indicating strong liquidity to meet short-term obligations.

Investors are anticipated to keep their attention on several key performance indicators as the company progresses through the quarter. These include the trends in the number of active buyers, fluctuations in spending per active buyer, and the trajectory of gross profit and EBITDA (earnings before interest, taxes, depreciation, and amortization) margins.

The valuation of Xometry's stock remains pegged at 8 times the projected gross profit for 2026, underpinning the $42 price target. JMP Securities' stance on the company is rooted in these financial metrics and recent developments within the company.

In other recent news, Xometry Inc. reported robust financial results for its third quarter of 2024, with a record revenue of $142 million, a 19% increase year-over-year. The company's marketplace gross profit saw a significant rise of 34%, and gross margin improved to 33.6%. The platform experienced substantial growth, with a 24% increase in active buyers and the supplier network exceeding 4,200.

Looking ahead, Xometry anticipates slight adjusted EBITDA profitability in Q4 and projects revenue growth in 2025 to outpace that of 2024. International revenue has already increased by 55% year-over-year. The company also expects to maintain at least 20% growth in 2025, with a focus on expanding wallet share and international markets.

Analysts noted a projected decline in supplier services revenue by approximately 10% and a slowdown in sequential marketplace growth to 4% in Q4. However, they also highlighted a record marketplace gross margin of 33.6%, strong adoption of the Team Space product, and ongoing investments in technology and operations aimed at enhancing profitability. These are recent developments that provide insights into Xometry's financial status and future expectations.

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