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On Tuesday, RBC Capital Markets analyst Matthew Swanson revised the price target for Xometry Inc (NASDAQ: NASDAQ:XMTR) to $32.00, down from the previous $32.00, while keeping a Sector Perform rating on the company’s shares. Currently trading at $26.78 with a market capitalization of $1.35 billion, Xometry has seen a significant 14.7% gain over the past week. The adjustment comes ahead of the firm’s expected first-quarter earnings report, scheduled to be released before the market opens on May 6th.
Swanson anticipates that Xometry will deliver first-quarter financial results that align with market expectations. The focus for investors, according to Swanson, is likely to be on how near-term macroeconomic pressures and the positive or negative impacts of tariffs are influencing the company. InvestingPro data shows that while the company operates with a moderate debt level and maintains strong liquidity with a current ratio of 4.38, it has not been profitable over the last twelve months. Despite the challenges posed by a manufacturing slowdown, Xometry’s management has previously suggested that there may be potential benefits from tariffs as customers look to diversify their supply chains, which could mitigate some negative effects.
The analyst also pointed out that moving forward, key indicators to watch would include the company’s continued expansion of adjusted EBITDA, investments to move upmarket, and guidance that reflects prudence. With analysts projecting profitability this year and net income growth expected, according to InvestingPro analysis, the company shows promising signs despite current EBITDA being negative at -$42.9 million. The decision to maintain the Sector Perform rating while lowering the price target to $32 reflects a contraction in the peer group multiples.
Swanson’s commentary highlights the balancing act between headwinds and potential tailwinds for Xometry. The company’s efforts to expand its EBITDA and go-to-market strategies are seen as crucial steps in navigating the current economic landscape.
Investors and market watchers are now looking to the upcoming earnings report to gauge Xometry’s financial health and strategic direction in the face of these macroeconomic factors. The reduced price target from RBC Capital Markets sets a new benchmark for the company’s stock performance in the near term.
In other recent news, Xometry Inc. has garnered attention with several key developments. JMP Securities reaffirmed its Market Outperform rating for Xometry, maintaining a price target of $40. The firm noted Xometry’s potential to benefit from the current tariff environment and its strategy of expanding within larger accounts. Meanwhile, Cantor Fitzgerald raised its price target for Xometry from $12 to $20, although it maintained an Underweight rating due to concerns about the company’s debt and prototyping applications. Craig-Hallum also increased its price target from $30 to $35, retaining a Buy rating, and expressed optimism about Xometry’s growth potential despite short-term challenges.
In a notable corporate move, Xometry announced that it has replaced KPMG LLP with Deloitte & Touche LLP as its independent auditor. The change came after KPMG’s reports on Xometry’s financials were free of adverse opinions, and the transition is pending Deloitte’s standard client acceptance procedures. The appointment of Deloitte marks a significant shift in Xometry’s financial oversight as the company continues to navigate the business services sector. These developments reflect a period of strategic adjustments and market evaluations for Xometry, as analysts and investors closely monitor its financial strategies and market opportunities.
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