Needham analyst James Ricchiuti has maintained their neutral stance on PRLB stock, giving a Hold rating on May 3.
James Ricchiuti has given his Hold rating due to a combination of factors, including Proto Labs’ (PRLB) strong performance in the first quarter of 2024, which saw revenues, earnings per share, and margins exceeding expectations. However, Ricchiuti notes a concerning guide for the second quarter, which is weaker than anticipated. This forecast for the June quarter reflects a decrease in large order sales at the beginning of April, which continued throughout the month, potentially indicating a broader economic trend rather than a company-specific shortfall.
Despite the underwhelming second-quarter guidance, Ricchiuti acknowledges the underlying progress Proto Labs has made, such as growing large order volumes and achieving a 5% increase in revenues per customer in the first quarter. The effort to cross-sell between the company’s factory and network offerings is also highlighted as a positive sign. However, due to the cautious outlook for the upcoming quarter, Ricchiuti has revised down the estimates for the years 2024 and 2025 while maintaining the Hold rating, suggesting that he believes the stock is fairly valued at the current time, with future prospects that are balanced by near-term uncertainties.
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Proto Labs (PRLB) Company Description:
Proto Labs, Inc. engages in the digital manufacture of custom prototypes and production parts. It offers 3D printing, CNC machining, and injection molding services. The company was founded by Lawrence J. Lukis and Gregg Bloom on May 5, 1999 and is headquartered in Maple Plain, MN.
