William Blair initiated research coverage of Markforged Holding Corporation (MKFG $10.40), a developer and manufacturer of composite and metal 3D printers, as well as software and consumables. Markforged has established a large fleet of connected 3D printers, supported by proprietary software solutions.
Analyst Brian Drab estimated that the company would grow revenue at a 42% compound annual rate from 2020 to 2023, with sales of $84.7 million in 2021 and $116.3 million in 2022.
Drab said, “In our view, Markforged is one of the top five manufacturers of industrial-grade 3D printers globally. The company offers a range of technologies, including office-safe metal printers and printers that can make extremely strong parts with composite materials, such as builds with continuous strands of carbon fiber—we view the company as the leader in carbon fiber printing. In addition, Markforged can provide over-the-air software updates in real time to improve printer speed and quality while reducing costs. The company continues to develop software solutions, such as Blacksmith, to provide customers with additional tools to track and monitor printing quality and productivity, enhancing Markforged’s value proposition. As of the end of 2020, Markforged had an installed base of about 9,300 connected printers. Management projects its installed base to grow at a 52% compound annual rate from 2020 to 2025, when the total is expected to exceed 70,000.”
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Current Ratings Distribution (as of 8/8/21)
Outperform (Buy): 76%
Market Perform (Hold): 23%
Underperform (Sell): 1%
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Market Perform (Hold): 12%
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