Craig-Hallum ‘warming to’ Desktop Metal after new supply agreement

Craig-Hallum analyst Greg Palm is "warming to shares" Desktop Metal following the company’s "solid" Q4 results. The analyst keeps a Hold rating on the name with a $2 price target despite seeing sine underlying business momentum and improved visibility into near-term profitability. Momentum seems to be building in several areas of the business, including interest for its P-50 Production System, "which has vastly underperformed expectations over the last few years," the analyst tells investors in a research note. Desktop Metal recently signed a master supply agreement with an unnamed consumer electronics company that could provide "meaningful" revenue over time, if successful, the firm says. While waiting for additional evidence that business trends have improved, Hallum believes the stock can work higher from current levels.