Why This Xometry Analyst Is Bullish

Xometry Inc XMTR is well-positioned to penetrate the sector and achieve secular growth, and its long-term prospects seem bright, according to BofA Securities.

The Xometry Analyst: Nat Schindler initiated coverage of Xometry with a Buy rating and a $90 price target.

The Xometry Thesis: The share price suggests “room for upside,” given the company’s digital leadership and “a large market opportunity in an industry ripe for disruption,” Schindler said in the initiation note.

The analyst expressed optimism about Xometry’s long-term prospects, citing its potential to “expand network in new regions, improve pricing accuracy, become an enterprise solution of work flow management, and grow seller services which should drive higher margins.

“We believe Xometry is well positioned to benefit from improving industrial manufacturing technologies and an increasing awareness of the outdated supply chain process prompted by COVID-19,” Schindler wrote.

“Looking out past the unusual environment created by the pandemic, we think Xometry’s business should be able to take share given its current penetration of just 0.1% of the estimated $260bn global opportunity,” he further mentioned.

XMTR Price Action: Shares of Xometry had risen by 5.45% to $78.73 at last check Monday.