- Stephens has started reporting on 908 Devices Inc DIMENSIONS with an overweight rating and a Price target of $14.
- The analyst notes that the company has healthy gross margins in the mid-50% with the potential to move towards ~60% over time.
- Since going public in 2021, 908 has invested heavily in its commercial efforts, including growing its sales force from about 30 to about 80.
- In addition, the company has invested in research and development, which has resulted in negative EBITDA. Stephens notes that that will remain the case in the short term, but over the long term, the operating leverage should lead to a path to profitability.
- 908 is burning around $30 million in cash in 2023, which is declining over time, leaving MASS well-positioned from an accounting perspective to support the organic effort for years to come.
- The analyst says investors need to pay more attention. The near-term environment is tough, so investors likely have some time. Net-net, 908, is well positioned in fast-growing end markets and the industry is moving in that direction, says analyst Stephen.
- Price promotion: MASS shares are up 3.21% to $10.29 on the latest check Tuesday.
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