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On Monday, JMP Securities reaffirmed their Market Outperform rating on Xometry Inc (NASDAQ:XMTR) with a steady price target of $42.00. The company, currently trading at $35.67 with a market capitalization of $1.77 billion, has shown impressive momentum with a 122% price return over the past six months. According to InvestingPro data, five analysts have recently revised their earnings estimates upward. The research firm’s analyst Nicholas Jones provided insights into the future potential of the company, stating that if Xometry can increase its active buyers to over 400,000 and achieve a 30% adjusted EBITDA margin—matching the upper end of its long-term goals—within the next two decades, the stock could potentially reach as high as $75. This optimistic scenario would equate to trading at approximately 15 times the estimated gross profit for 2026, or six times the projected revenue for the same year.
Jones clarified that the current price target of $42 is based on a more conservative valuation, pegging the stock at eight times the estimated gross profit for 2026. The company has demonstrated strong revenue growth of 21.19% over the last twelve months, with analyst targets ranging from $12 to $48. The analysis by JMP Securities hinges on the company’s ability to grow its customer base significantly and to reach ambitious profitability targets in the long run.
Xometry operates as an online marketplace for custom manufacturing, connecting customers with manufacturing services like 3D printing, CNC machining, and injection molding. The company’s platform aims to streamline the manufacturing process, allowing buyers to source custom parts efficiently. With a strong current ratio of 4.59, InvestingPro analysis indicates the company maintains healthy liquidity with assets well exceeding short-term obligations.
The reaffirmed Market Outperform rating suggests that JMP Securities remains confident in Xometry’s ability to perform well in the market relative to its current stock price. The analyst’s comments reflect a long-term view of the company’s growth trajectory and profitability potential.
Investors in Xometry may consider the analysis by JMP Securities as a sign of the firm’s belief in the company’s strategic direction and its ability to capitalize on the expanding market for on-demand manufacturing services.
In other recent news, Xometry, Inc. has disclosed a significant executive change. The company’s Chief Technology Officer, Matt Leibel, is set to depart, with Vaidyanathan Raghavan taking over the role. This transition, as reported in Xometry’s SEC filing, is not due to any disagreements or disputes and is expected to be completed by February 28, 2025.
In terms of financial analysis, JMP Securities has maintained a Market Outperform rating for Xometry, with a $42.00 price target. Analyst Nicholas Jones highlighted the company’s significant accomplishment in the Asia-Pacific region, which includes securing a seven-figure order in the third quarter.
These recent developments follow Xometry’s continued expansion in the business services sector. The company’s stock valuation, according to JMP Securities, is based on the projected gross profit for 2026, reinforcing the $42 price target. Investors are expected to keep an eye on key performance indicators such as active buyer trends and EBITDA margins as the company progresses.
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