Needham analyst James Ricchiuti maintained a Buy rating on Shapeways Holdings (SHPW – Research Report) today and set a price target of $4.00.
James Ricchiuti has given his Buy rating due to a combination of factors. Despite a less than anticipated performance in Q3, Ricchiuti sees potential in Shapeways Holdings (SHPW). Their revenue was slightly below guidance mainly due to deferral of enterprise-related business into Q4. On the other hand, software revenue saw a sequential increase of 16%, putting it on track to double by 2023.
In addition, SHPW is demonstrating promising momentum in its new business sectors. Although sales cycles have lengthened, the company has responded with necessary cost measures, including a 15% reduction in staff. The company’s Q4 revenue guidance aligns with expectations, and their Q3 cash burn rate is as anticipated with improvements expected in Q4. The company also mentioned exploring a range of strategic alternatives, such as potential capital raise, merger or sale of a business segment, which indicates proactive management and potential for growth.
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Based on the recent corporate insider activity of 10 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SHPW in relation to earlier this year.
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Shapeways Holdings (SHPW) Company Description:
Galileo Acquisition Corp operates as a blank check company. The firm is formed under the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination.
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