Xometry stock price target raised to $40 from $35 at UBS on strong Q2

Investing.com - UBS raised its price target on Xometry Inc (NASDAQ:XMTR) to $40.00 from $35.00 while maintaining a Neutral rating following the company’s strong second-quarter performance. According to InvestingPro data, the stock is currently trading above its Fair Value, with a significant 42% return in the past week.

Xometry shares jumped 43% on Tuesday after the company reported better-than-expected second-quarter results, with revenue, gross margin, and EBITDA all exceeding analyst expectations. The company maintains healthy liquidity with a current ratio of 3.74 and has achieved 19.35% revenue growth over the last twelve months.

Despite an uncertain macroeconomic environment, Xometry continues to achieve year-over-year growth exceeding 20% while delivering strong incremental margins and investing in growth initiatives.

The company provided guidance for the third quarter in line with expectations and raised its full-year 2025 outlook based on its second-quarter performance. Management noted that July was off to a strong start, though they embedded some growth moderation in the second half of the year due to macroeconomic conservatism.

UBS analysts indicated that while the quarterly results reinforce investor confidence in Xometry’s growth and profitability trajectory, they were surprised by the magnitude of the stock’s move. With shares now trading at 9 times next-twelve-months enterprise value to gross profit and a Price/Book ratio of 7.2x, UBS believes the risk/reward profile appears balanced.

In other recent news, Xometry Inc. reported impressive financial results for the second quarter of 2025, significantly surpassing expectations. The company achieved an earnings per share of $0.09, more than double the forecasted $0.0439, reflecting a 105.01% surprise. Revenue also exceeded projections, reaching $163 million compared to the anticipated $156.49 million, marking a 3.87% surprise. Following these results, JPMorgan raised its price target for Xometry to $55 from $38, citing strong marketplace growth. Xometry’s marketplace revenue grew by 26% year-over-year, surpassing management’s guidance of 20-22%. Additionally, Citizens JMP increased its price target for the company to $50 from $45, maintaining a Market Outperform rating. The firm highlighted Xometry’s revenue and EBITDA exceeding the high end of guidance by $5.5 million and $1.9 million, respectively. These developments indicate broad-based strength across U.S. enterprises, international markets, and verticals.

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