Canaccord Doubles Price Target on Nano Dimension (NNDM) on Back of DoD Approval
Can you feel the ground moving beneath your feet? Shares of Nano Dimension (NASDAQ:NNDM) skyrocketed over 100% today after the Israeli 3D printer firm announced that it has received a Commercial and Government Entity (CAGE) Code from the US DOD to become a registered and approved vendor to US Federal agencies. In addition to the certification announcement, the company announced the sale of a printer to an existing defense customer. The shake, rattle and roll generated by today’s announcements impressed, and in some cases silenced, some big bears.
In reaction, Canaccord analyst Robert Burleson boosted his price target on NNDM from $2.00 to $4.00, while reiterating a Buy rating on the stock. (To watch Burleson’s track record, click here)
Burleson expects multiple expansion as the company continues to successfully execute its growth strategy. The analyst opined, “We believe that this is an important recognition for the company as aerospace and defense are expected key verticals for adoption moving forward given the highly sensitive nature of products and critical production timing. Both design sensitivity and speed of production timing are critical demand drivers for NNDM’s DragonFly printers. The government certification is likely to drive a faster and less intensive sales process for both government entities and commercial aerospace and defense customers through circumventing some of the required vetting process.”
“We continue to view NNDM as providing a disruptive printer technology that is poised for rapid growth on accelerating customer awareness and adoption. Importantly, we believe recent execution including an expansion of channel partner relationships will support the anticipated growth,” Burleson concluded.
Aside from this rating, NNDM has only received one other analyst rating in the last three months. National Securities analyst Ilya Grozovsky has a Buy rating on the stock with a relatively bullish $7.00 price target- suggesting a nearly 150% potential upside from current levels.