2024-02-25 21:14:15 ET
Summary
- The demand environment continues to weigh on Materialise's business, although the Medical segment remains a standout, with strong growth and improving margins.
- The adoption of robotics in joint replacement surgeries poses a threat to Materialise's medical business, though.
- Investments in the CO-AM platform and the ACTech facility expansion should begin to pay off in 2024, supporting growth and Materialise's competitive position.
- Given Materialise's relatively low valuation and the potential for solid growth and improving margins, Materialise's stock should do well over the next 1-2 years.
Materialise ( MTLS ) is about to emerge from a period of significant investment, which should see the company's profit margins move higher over the next 1-2 years. A modest valuation, combined with solid growth and a transition to profitability, should see the stock perform well going forward. While Materialise is a quality company with a potentially bright future, there are risks. Competition is rising in Materialise's Software segment, Manufacturing demand remains soft, and rising adoption of robotics in joint replacement surgeries threatens to undermine the Medical business....
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Materialise: Upside From A Transition To Profitability