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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)8 Comments
Alephbe Investments profile picture
Alephbe Investments


  • 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

mgkaya/E+ via Getty Images

If Desktop Metal, Inc. (NYSE: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 profile picture
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.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of DM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (8)

Buying on this pullback. Promising long term investment.
tfwg profile picture
There is heavy selling for this stock. Don't understand why the market does not believe this company's tech is a good bet for the future.
I'm freakin' underwater with this one. It's gonna be a bigly loss.
heyadam95 profile picture
$DM To the Moon!
They do not believe that it still has a couple of years left, I think that the price will not move much, except with a 2-3 year call, I do not see more options, due to opportunity cost
Windough-Shopper profile picture
Im long at 780
apple long profile picture
I’m in. Long
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