Xometry Inc (XMTR) PT Raised to $30 at Goldman Sachs

Goldman Sachs analyst Eric Sheridan raised the price target on Xometry Inc (NASDAQ: XMTR) to $30.00 (from $28.00) while maintaining a Buy rating.

The analyst comments "In its Q4’24 earnings report, Xometry (XMTR) produced a strong quarter that reflected a few key themes: 1) total revenues were above GS/FactSet Street estimates & guidance for FY25 remains positive on the back of Marketplace revenue remaining healthy at 20%+ growth – a trend supported by mgmt focus on the enterprise segment, expansion of buyer and supplier networks, marketplace menu & International scope of the platform; 2) While Gross Margins will be impacted by investments in Q1, mgmt. expressed confidence in the return to regular Marketplace GM% expansion in Q2 & beyond; 3) XMTR guided to a positive Adj. EBITDA for FY25 (despite a temporary dampening in Q1 leading to negative Adj. EBITDA driven by investments made to scale in different geographies) and flagged a 20%+ incremental Adj. EBITDA margin in coming years as they progress towards $1bn revenue; & 4) Continued to highlight the impact that AI has had both internally and externally on the platform (& its products) as they focus on the elements of technology disruption of the wider manufacturing supply chain. We expect near-term debates to center around trajectory and balance of growth vs. incremental margins as the company remains focused on investing against the long-term opportunity it sees ahead of it. We reiterate our Buy rating & adjust our 12-month PT from $28 to $30 as we update our operating estimates for this earnings report and management's updated forward outlook."

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