MKFG - Markforged stock tumbles as William Blair downgrades on soft macro conditions

2023-10-24 08:41:46 ET

• Markforged ( NYSE: MKFG ) shares tumbled 18% premarket on Tuesday after William Blair downgraded its shares to Market Perform (Hold) citing challenging macroeconomic conditions which are likely to persist into 2024.
• The 3D printer maker preannounced its third quarter 2023 results on Monday, with prelim revenue of ~$20M falling short of $25.49M consensus. Hurt by elongated sales cycles, the company also cut its full year revenue outlook to $90M- $95M (down 6%-11% Y/Y).
• In a note published today, William Blair said, "Given Markforged's relatively stagnant revenue growth over the last two years, lack of profitability to date, and our belief that the cash flow breakeven target has been materially pushed out (heightening balance sheet risk), we believe the valuation discount is warranted and believe investors could be further diluted if the company ultimately needs to raise capital. As a result, we are downgrading shares to Market Perform."
• Seeking Alpha's Quant system rates also the stock as "Hold"

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