2023-05-14 02:50:45 ET
Summary
- Desktop Metal missed both revenue and GAAP EPS expectations, with revenue significantly below expectations.
- We believe that the current macroeconomic environment is seriously detrimental to Desktop Metal, with interest rates unlikely to return to 0 anytime soon.
- We are concerned about Desktop Metals' current free cash flow burn rate and balance sheet position despite cost savings.
- Consequently, we believe that if capital were to be raised through the equity market, it would be seriously detrimental to shareholders.
For further details see:
Tough Times Ahead For Desktop Metal (Rating Downgrade)