JPMorgan raises Xometry stock price target to $55 on strong marketplace growth

Published 06/08/2025, 09:32
JPMorgan raises Xometry stock price target to $55 on strong marketplace growth

Investing.com - JPMorgan raised its price target on Xometry Inc (NASDAQ:XMTR) to $55.00 from $38.00 while maintaining an Overweight rating following the company’s second-quarter earnings report. According to InvestingPro data, the stock has shown remarkable momentum with a 270% return over the past year, though current analysis suggests the stock is trading above its Fair Value.

Xometry reported better-than-expected second-quarter results, with marketplace revenue growth of 26% year-over-year exceeding management’s guidance of 20-22%. The company saw broad-based strength across U.S. enterprises, international markets, and verticals. The company maintains a healthy financial position with a current ratio of 3.74, indicating strong liquidity to meet short-term obligations.

The manufacturing marketplace platform raised its full-year 2025 marketplace growth outlook to 23-24%, reflecting the second-quarter performance, strong momentum in July, and what JPMorgan described as a conservative macro outlook. Management attributed recent momentum primarily to product improvements.

Marketplace gross margin reached a record 35.4% in the quarter, which JPMorgan noted helps disprove a long-standing bear thesis about the company’s profitability potential. The strong top-line performance flowed through to improved bottom-line results.

Xometry shares were trading up 51% following the earnings report, with JPMorgan indicating the company has "long traded at what we have argued to be an unwarranted discount to marketplace peers." The firm identified Xometry as its highest conviction small and mid-cap idea as a play on manufacturing. InvestingPro subscribers have access to 12 additional exclusive tips and comprehensive analysis on Xometry’s valuation metrics and growth potential through our detailed Pro Research Report.

In other recent news, Xometry Inc. reported a strong performance for the second quarter of 2025, significantly exceeding earnings expectations. The company achieved an earnings per share (EPS) of $0.09, more than doubling the anticipated figure of $0.0439, which resulted in a surprise of 105.01%. Xometry’s revenue also surpassed projections, coming in at $163 million compared to the forecasted $156.49 million, marking a 3.87% surprise. These results highlight Xometry’s ability to outperform market expectations and deliver solid financial outcomes. The company’s recent achievements have attracted attention from investors and analysts alike. While the stock experienced a notable rise, the focus remains on the company’s financial performance and growth trajectory. These developments underscore the importance of closely monitoring Xometry’s future earnings reports.

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