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On Monday, JMP Securities analysts maintained a positive outlook on Xometry Inc (NASDAQ:XMTR), currently trading at $25.72 with a market cap of $1.29 billion, reiterating a Market Outperform rating and a $40.00 price target. The analysts highlighted Xometry’s position as an early mover in the shift of B2B custom manufacturing spending from offline to online. They emphasized the company’s exposure to a $1 trillion total addressable market (TAM) and a $20 billion serviceable obtainable market (SOM), of which Xometry currently holds a 2.5% share. According to InvestingPro data, analyst consensus remains moderately bullish, with targets ranging from $20 to $45.
According to JMP Securities, Xometry’s market share is expected to grow, with projections suggesting an increase of approximately 30 basis points over the next two years. This would result in the company holding a 3.1% share of its SOM by 2026. The analysts believe that the market is undervaluing Xometry’s vertical SaaS-like business model, which allows the company to land and expand within large accounts. InvestingPro data shows strong revenue growth of 17.7% in the last twelve months, with a healthy current ratio of 4.38x indicating strong liquidity.
Xometry’s supply and demand interfaces are seen as having a strong product-market fit, likely to experience continued usage expansion, particularly as the company intensifies its focus on enterprise efforts. JMP Securities views these efforts as similar in nature to a vertical SaaS business model.
The firm’s confidence in Xometry is further bolstered by the company’s ability to deliver robust growth despite challenging industry and macroeconomic conditions. JMP Securities sees the recent pullback in Xometry’s stock as an attractive entry point for investors, given the long-term secular tailwinds supporting the business. The $40 price target is based on an 8x enterprise value to estimated 2026 gross profit multiple. Based on InvestingPro’s Fair Value analysis, the stock appears fairly valued at current levels. Discover 10+ additional exclusive ProTips and comprehensive financial analysis in the Pro Research Report, available to subscribers along with insights on 1,400+ other US stocks.
In other recent news, Xometry Inc. reported its fourth-quarter 2024 financial results, exceeding earnings expectations with an EPS of $0.06 against the forecasted $0.0267. The company also surpassed revenue projections, achieving $148.55 million compared to the expected $146.33 million. Goldman Sachs responded to these results by raising Xometry’s stock price target to $30, maintaining a Buy rating, highlighting the company’s robust performance and positive guidance for fiscal year 2025. Craig-Hallum also adjusted their outlook, increasing the price target to $35 while retaining a Buy rating, citing optimism about Xometry’s sustainable growth rate and market opportunities.
In a strategic move, Xometry announced the appointment of Deloitte & Touche LLP as its new independent registered public accounting firm, replacing KPMG LLP. This change follows an audit committee decision and comes without any disagreements on accounting principles or practices. Cantor Fitzgerald updated its stance on Xometry, increasing the price target to $20 but keeping an Underweight rating, noting potential concerns over prototyping applications and upcoming debt obligations. These developments reflect analysts’ varied perspectives on Xometry’s financial strategy and market position.
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