William Blair downgrades Markforged amid challenging backdrop

William Blair downgraded Markforged to Market Perform from Outperform without a price target. The company preannounced Q3 results that were below expectations, citing elongated sales cycles and pressure on close rates driven by worsening macroeconomic conditions, the analyst tells investors in a research note. The firm cites several reasons for the downgrade, including the challenging macroeconomic backdrop that is likely to persist into 2024, Markforged’s sales hinging on the success of two high-priced machines, management’s target to be cash flow breakeven in Q4 likely being pushed out, and its cash burn throughout 2024 creating balance sheet risk.