Materialise NV (MTLS): A Bull Case Theory

We came across a bullish thesis on Materialise NV (MTLS) on Substack by Unemployed Value Degen. In this article, we will summarize the bulls’ thesis on MTLS. Materialise NV (MTLS)’s share was trading at $6.10 as of Feb 24^th. MTLS’s trailing P/E was 25.28 according to Yahoo Finance.

A close-up of a 3D printed object, showcasing the intricacies of the 3D printing materials.

Materialise (MTLS) saw a dramatic 40% stock sell-off following its Q4 earnings, despite reporting GAAP net profit growth for both the quarter and full year. The decline was driven by management’s guidance for weaker near-term results due to capex for its U.S. expansion, a factor that aligns with long-term growth rather than signaling fundamental weakness. The company’s medical segment, a standout performer, is growing at 14.3% annually with 30% margins, and the U.S. expansion is set to accelerate this trajectory. This overreaction presents a compelling investment opportunity, reinforcing the importance of starting with a small position and averaging in. The sell-off is not a reflection of deteriorating fundamentals but rather a market mispricing tied to temporary headwinds. Investors with a long-term perspective stand to benefit as MTLS executes its expansion, positioning itself for substantial growth.

Materialise NV (MTLS) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 7 hedge fund portfolios held MTLS at the end of the third quarter which was 6 in the previous quarter. While we acknowledge the risk and potential of MTLS as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than MTLS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.