Desktop Metal: Investments In Technology And Recurring Revenue Streams May Imply More Than 41% Upside Potential

Nov. 02, 2021 4:49 PM ETDesktop Metal, Inc. (DM) StockDM8 Comments
Alephbe Investments
379 Followers

Summary

  • Desktop Metal offers new additive manufacturing technologies based on the production of end-use parts. The company produces composite and metal systems for the automotive, heavy industry, and consumer goods sectors.
  • Additional investments in reducing workflow complexity, software development, and hardware will most likely increase the adoption of additive manufacturing.
  • Take into account that Desktop Metal is intending to replace industrial processes representing a target market of $12 trillion.
  • If we use a free cash flow multiple of 40x, terminal FCF of $230 million, net debt close to $500 million, and a share count of 260 million, the implied share price is equal to $15.
  • In my view, as more traders learn about DM's expectations, the demand for the stock will increase, which may push the share price up.

Heap Of Money

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If Desktop Metal, Inc. (DM) further invests in new innovative technologies to implement additive manufacturing technologies, sales will most likely trend north. Besides, if DM receives new potential recurring revenue streams from service contracts, the FCF margin would

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Alephbe Investments
379 Followers
From China, I am a financial consultant. I have worked 10 years in Europe for some big banks. I am into growth stocks. I do not guarantee or provide any warranties or representations as to the accuracy, timeliness, completeness, reliability or usefulness of any information I provide. Use of my comments is at User's sole risk. Under no circumstances, including, but not limited to, negligence, shall I be liable for any direct, indirect, incidental, special or consequential damages, even if they have been advised of the possibility of such damages. User specifically acknowledges and agrees that I am not liable for any conduct of any User. I also don't give financial advice.

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