Lake Street analyst Jacob Stephan maintained a Buy rating on Markforged Holding (MKFG – Research Report) today and set a price target of $1.50.
Jacob Stephan has given his Buy rating due to a combination of factors concerning Markforged Holding’s current market position and future prospects. Despite the anticipated soft fourth-quarter results and conservative revenue guidance for 2024, Stephan recognizes Markforged as a leader in the composite additive manufacturing sector. He notes the company’s capacity to produce robust composite parts, which is crucial for manufacturing applications. The current negative enterprise value of Markforged shares is seen as highly appealing for long-term investors, given the sophistication of the company’s product offerings. Stephan suggests cautious entry into the position prior to the earnings release to mitigate concerns regarding cash burn.
Further underpinning Stephan’s recommendation is his analysis of industry trends and Markforged’s performance within that context. The Q4 industry survey suggests a general softness in demand for additive systems, especially high-end ones, due to macroeconomic challenges. However, there is a silver lining in the strength of material sales, which indicates steady utilization rates of existing machines. This aspect likely reflects robust service bureau demand. Although Markforged has faced difficulties due to a lack of lower-priced, entry-level system offerings, their strong material sales in Q4 suggest a solid existing customer base. The combination of these insights leads Stephan to maintain a Buy rating with a price target of $1.50 for Markforged Holding’s stock.
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Markforged Holding (MKFG) Company Description:
One is a blank check company.
