Xometry Inc. (XMTR) Appears Attractive Following $225 Million Public Offering

Xometry Inc. (NASDAQ:XMTR) is one of the 10 best industrial distribution stocks to invest in according to hedge funds.

On June 2, Xometry Inc. (NASDAQ:XMTR) announced that it has initiated an underwritten public offering worth $225M involving its Class A common shares. The net proceeds resulting from this offering will be utilized by the company for general corporate needs and to meet its working capital requirements.

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The company revealed that J.P. Morgan and Goldman Sachs & Co. are facilitating the proposed offering as joint book-runners.

The company’s impressive first-quarter performance has also been grabbing analyst interest. Back on May 13, following the first quarter earnings report, Citi decided to update its outlook on Xometry Inc. (NASDAQ:XMTR). The firm raised its target price on the stock from $65 to $98, while maintaining a Buy rating. Citi noted that the company’s marketplace growth is currently ramping up.

The firm also outlined the fundamental drivers behind the upward revision in price target. The company’s newer producers are leading to enhanced average revenue per user gains for the business. Citi highlighted Xometry’s partnership with Siemens and believes that this specific collaboration is expected to bring significantly faster growth and profitability.

Xometry Inc. (NASDAQ:XMTR) is an AI-powered online manufacturing marketplace that connects buyers with suppliers of manufacturing services through an instant quoting engine. The company operates Thomasnet, which is a platform offering digital marketing services to manufacturers. The company also provides cloud-based systems, rapid prototyping, injection molding, 3D printing, sheet forming, and more.

While we acknowledge the risk and potential of XMTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XMTR and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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