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But it’s far from the only high-quality growth stock with huge upside potential that has gone on sale recently. But it does mean that if management executes and the company does grow as many predict it will grow over the next few years, then Desktop Metal stock is a potential multi-bagger from current levels.ĭesktop Metal could score you huge returns from current levels.The market, for whatever reason, hates early-stage technology stocks right now. That doesn’t mean DM stock is going to reverse course anytime soon.Our modeling suggests that, based on the company’s long-term earnings growth potential, DM stock is worth at least $20 today, and likely closer to the $30 level. But with a famed value investor saying he likes the stock at current levels and Wall Street analysts putting out $20-plus price targets, it looks like DM stock may be a compelling “dip buy” for long-term investors.
The valuation is just extended at nearly 30X this year’s sales estimates.
![desktop metal desktop metal](https://scg-de.s3.amazonaws.com/images/article/Shop-System-complete_600.jpg)
It’s noteworthy that a value investor is bullish on DM stock, because valuation is really the only knock on Desktop Metal.This helped push the DM stock price higher in midday trading.But famed hedge fund manager Bill Miller - known for being a value investor - said on CNBC interview that he liked DM stock at current levels.As such, DM stock has unfortunately found itself on the wrong side of a massive momentum shift in the markets. Desktop Metal is both early-stage and the product of a SPAC merger. The market has fallen out of love with early-stage technology companies, especially those that came public through SPAC mergers.Currently, DM stock is trading higher by 12.2%, up to $12 per share.This continues what has been a multi-week downtrend in DM stock, during which shares of the next-gen 3D printing company have dropped from $35 to $10. Amid a broader slide in the market, Desktop Metal (NYSE: DM) stock dropped more than 5% on Tuesday.Combining Adaptive3D’s patented and superior elastomer materials with our printers, such as the Xtreme 8K, which lead the industry in throughput, affordability, and part quality, will accelerate the adoption of additively manufactured solutions for high-volume, end-use elastomeric parts and products. Adaptive3D has the best photoelastomer resins in the world. “Elastomers and rubber materials are a killer app for Additive Manufacturing 2.0 (AM 2.0). “The acquisition of Adaptive3D advances Desktop Metal’s vertical integration strategy to grow our portfolio of materials and expand the high-volume applications supported by our polymer additive manufacturing solutions,” said Ric Fulop, founder and CEO of Desktop Metal. Adaptive3D’s core technology was developed through Defense Advanced Research Projects Agency (DARPA) funding, and the company has received strategic capital from leading materials companies including Covestro, Arkema Group, West Pharmaceuticals, Applied Ventures and Royal DSM. Adaptive3D printable materials are optimized for high-throughput manufacturing of functional, complex 3D plastic and rubber parts in consumer, healthcare, industrial, transportation, and oil and gas markets. The company’s flagship resin is Elastic ToughRubber 90, a printable elastomer. Desktop Metal has acquired Adaptive3D, a provider of elastomeric solutions for additive manufacturing.Īdaptive3D products enable volume end-use parts production via additive manufacturing of odorless, tough, strain-tolerant, tear-resistant, and biocompatible rubbers and rubber-like materials.