Xometry price target lowered to $27 from $48 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Xometry to $27 from $48 and keeps a Buy rating on the shares. While the firm’s long-term bullish thesis on Xometry doesn’t revolve around the recent issues with pricing, Craig-Hallum was hoping and assuming that it would have been a quicker fix. While late in Q3 the issue seemed to be more focused on suppliers, the firm believes recent issues altered buyer behavior which lowered average order size, something that required additional algorithm adjustments in the quarter. Importantly, commentary suggests that average order values and pricing bottomed in January and improved in February, giving management confidence that the worst may be over, Craig-Hallum adds.