On Wednesday, Cantor Fitzgerald initiated coverage on Xometry Inc (NASDAQ:XMTR) with an Underweight rating and set a price target of $13.00. The firm expressed concerns about the company's business model, which primarily services prototyping orders through its asset-light, marketplace approach.
The analyst's statement highlighted limitations in the model's ability to support the qualification, transparency, and tracking required for serial production of end-use parts. This assessment suggests that Xometry may face challenges in expanding beyond its current market scope.
Cantor Fitzgerald's perspective is influenced by the industry's gradual shift towards production applications and the existing market saturation in prototyping. Based on these factors, the firm anticipates that Xometry's growth potential is restricted.
The price target of $13.00 reflects a 12-month forecast for the stock's performance. This valuation is based on the firm's analysis of Xometry's capabilities and market position relative to the evolving demands of the manufacturing sector.
Xometry's stock rating and price target by Cantor Fitzgerald are now part of the broader financial community's assessment of the company's prospects in the competitive marketplace.
In other recent news, Xometry reported strong results for the first quarter of 2024, with revenues slightly exceeding consensus expectations by about 2%. The company's revenue rose to $123 million, a 16% increase year-over-year, primarily driven by a 24% surge in its Marketplace business. Despite this, Xometry experienced a decrease in Marketplace Revenue per Active Buyer by 10% quarter-over-quarter.
In analyst updates, Citi revised its price target for Xometry, reducing it to $24 from the previous $31, while maintaining a Buy rating on the company's shares. This adjustment followed Xometry's recent Q1 results and reflects broader uncertainty in the manufacturing sector's economic outlook.
In other company news, Xometry has appointed Subir Dutt as its new Chief Sales Officer. Dutt brings extensive experience in AI, cloud services, and transformational technologies, and his appointment is expected to enhance Xometry's penetration across top accounts and facilitate expansion across various industry verticals.
InvestingPro Insights
While Cantor Fitzgerald has cast doubts on Xometry Inc's (NASDAQ:XMTR) ability to scale within the manufacturing sector, recent data from InvestingPro offers additional context on the company's financial health and market performance. According to InvestingPro, Xometry's market capitalization currently stands at $736.39 million, reflecting the size and value that investors associate with the company. Despite analysts not expecting the company to be profitable this year, as indicated by a negative P/E ratio of -11.14, Xometry has demonstrated a notable revenue growth of 19.42% over the last twelve months as of Q1 2024.
InvestingPro Tips reveal that while the stock has experienced a significant downturn over the past six months, with a total return of -40.59%, it is important to note that the company's liquid assets exceed its short-term obligations, indicating a level of financial stability. Additionally, the company operates with a moderate level of debt, which could be a factor in its ability to navigate the competitive pressures highlighted by Cantor Fitzgerald.
For investors seeking a more comprehensive analysis of Xometry's potential, there are additional InvestingPro Tips available, which can be accessed through the platform. To deepen your investment research, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Keep in mind that the next earnings date is slated for August 7, 2024, which could provide further insights into the company's trajectory and operational performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.