Desktop Metal, Inc. (DM), an American technology company that designs and markets 3D printing systems, has announced the acquisition of Aerosint, a multi-material recoating systems provider for additive manufacturing. The terms of the deal have not been disclosed so far.
Following the news, shares of the company declined 2.3% in Monday’s trading session. The shares further declined marginally and closed at $10.12 in the extended trading session.
With this buyout, Desktop Metal will be able to access Aerosint’s proprietary digital process and offer accurate and high-speed printing across a wide range of products like polymers, metals, and ceramics.
CEO of Desktop Metal Ric Fulop said, “This transaction advances our strategy to own differentiated print technologies that enable an expanding set of AM 2.0 applications at scale. Industrializing Aerosint’s core technology and related powder processing systems will provide many benefits to the broad adoption of AM solutions.” (See Desktop Metal stock chart on TipRanks)
On July 12, Lake Street analyst Troy Jensen reiterated a Sell rating on the stock. The analyst, however, lowered the price target from $11 to $9, which implies downside potential of 11.8% from current levels.
According to Jensen, even though the future of 3D printing and the subsequent demand for its equipment remains robust, Desktop Metal’s revenue forecasts remain aggressive.
Consensus among analysts is a Hold based on 2 Buys, 1 Hold, and 1 Sell. The average Desktop Metal price target stands at $16.25, which implies upside potential of 59.3% from current levels. Shares have declined 2.7% over the past year.
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