PRLB - Proto Labs stock dips; Craig-Hallum cuts PT

Proto Labs (NYSE:PRLB) stock fell ~6% on Monday after gaining as much as 8.1% Friday on Q1 results were slightly above Street expectations. Craig-Hallum cut its price target to $50 from $56, implying a potential 8.9% upside to its last close. Meanwhile, William Blair maintained its Market Perform rating, "given the current relatively high multiple, continued margin pressure and our expectation for low-double-digit earnings growth through 2026, we view the stock as fully valued", analyst Brian Drab wrote in a note to clients. Drab raised concerns over ongoing pressure on PRLB's gross margin. "Headwinds included under-absorption of capacity, wage inflation, services that have not reached scale, business mix, change in trade norms in Europe due to Brexit and lower margins at acquired companies (including Hubs)," he added. On average, Wall Street analysts rated PRLB Hold, with an average PT of $55. SA Quant rating system rated PRLB Hold. PRLB stock dropped ~21% YTD.

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Proto Labs stock dips; Craig-Hallum cuts PT