On Tuesday, Cantor Fitzgerald began coverage on shares of Desktop Metal Inc. (NYSE:DM), assigning an Overweight rating to the stock along with a 12-month price target of $1.25. The firm's positive outlook on Desktop Metal is grounded in the company's recent strategic acquisitions and its diversified product offerings in the 3D printing sector.
The analyst from Cantor Fitzgerald highlighted Desktop Metal's acquisition of EnvisionTEC and ExOne as key drivers for the Overweight rating. These acquisitions have expanded the company's reach into polymers and sand-casting applications. Additionally, Desktop Metal's own investments in metal powder jetting technology contribute to the firm's optimistic view.
Desktop Metal is now recognized for its comprehensive suite of products, which includes a variety of hardware, software, and proprietary materials tailored for both metal and polymer 3D printing applications. This diverse product range is seen as a competitive advantage in the rapidly growing additive manufacturing industry.
Cantor Fitzgerald's analysis suggests that there is limited downside to Desktop Metal's stock from its current valuation. The $1.25 price target reflects the firm's confidence in the company's potential for growth and market position over the next year.
The Overweight rating implies that the analyst believes Desktop Metal's stock could outperform the average return of the stocks that the analyst covers. This positive outlook is based on Desktop Metal's strategic moves to strengthen its product lineup and its ability to cater to a wide array of 3D printing needs.
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