Lake Street has reaffirmed its optimistic assessment of Velo3D, Inc. (VELO), a leader in metal 3D printing technology, by increasing its price target and reiterating a 'Buy' rating. This endorsement comes on the heels of the company's strong first-quarter fiscal year 2026 financial report, which showcased significant revenue growth and a clear path toward profitability. The analyst firm highlighted the company's robust performance as a key indicator of its promising trajectory for the year ahead.
The positive revision from Lake Street occurred on May 13, following Velo3D's announcement of its Q1 2026 earnings on May 12. The firm adjusted its price target for VELO shares from $18 to $20, signaling increased confidence in the company's market potential. This upward adjustment was primarily driven by the belief that the reported strong financial results provide investors with assurance regarding the anticipated growth and operational improvements expected in the current year.
Velo3D's first-quarter financial report for 2026 demonstrated impressive growth, with total revenue reaching $13.8 million, marking a substantial 48% increase compared to the same period in the previous year. The company also reported a gross margin of 17.2%. A significant driver of this growth was the 3D Printer and parts revenue, which surged by 60% year-over-year. Management attributed this rise to several factors, including an increase in the average selling price of its products, a higher volume of systems sold, and an uptick in revenue from its recurring parts services (RPS).
Looking forward, Velo3D's management reiterated its financial projections for the full year 2026, expecting revenue to fall within the range of $60 million to $70 million. Furthermore, the company remains on track to achieve positive EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) during the second half of 2026. This forward-looking guidance reinforces Lake Street's conviction in Velo3D's operational efficiency and market expansion capabilities.
Velo3D, Inc. is recognized as an innovator in the field of additive manufacturing, specializing in the development and production of metal laser sintering printing machines for advanced 3D printing applications. The company's product portfolio includes its cutting-edge Assure System, Flow Software, and Sapphire and Sapphire XC printers, all designed to meet the rigorous demands of industries requiring precision and reliability in metal components. These offerings underscore Velo3D's commitment to delivering high-performance solutions in the rapidly evolving 3D printing sector.
This sustained positive outlook by Lake Street, bolstered by Velo3D's solid Q1 financial performance and promising future guidance, suggests a confident investment sentiment in the company's continued growth and its increasing influence in the advanced manufacturing landscape.
