Cantor starts Xometry with Underweight on limited growth potential

Cantor Fitzgerald analyst Troy Jensen initiated coverage of Xometry with an Underweight rating and $13 price target. The company’s asset-light, marketplace model can service mostly prototyping orders and is unable to support the parts’ qualification, transparency, and tracking needed for serial production of end-use parts, the analyst tells investors in a research note. The firm says that given the long-term shift to production applications and market saturation in prototyping, it views Xometry’s growth potential as limited. The company’s lower revenue per customer reflects prototyping orders and a customer cohort analysis shows very high initial interest that quickly declines, reflecting one-off prototyping work, contends Cantor.