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Xometry Inc. (NASDAQ:XMTR) is one of the 10 best industrial distribution stocks to invest in according to hedge funds.

On June 2, Xometry Inc. (NASDAQ:XMTR) announced that it has initiated an underwritten public offering worth $225M involving its Class A common shares. The net proceeds resulting from this offering will be utilized by the company for general corporate needs and to meet its working capital requirements.

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The company revealed that J.P. Morgan and Goldman Sachs & Co. are facilitating the proposed offering as joint book-runners.

The company’s impressive first-quarter performance has also been grabbing analyst interest. Back on May 13, following the first quarter earnings report, Citi decided to update its outlook on Xometry Inc. (NASDAQ:XMTR). The firm raised its target price on the stock from $65 to $98, while maintaining a Buy rating. Citi noted that the company’s marketplace growth is currently ramping up.

The firm also outlined the fundamental drivers behind the upward revision in price target. The company’s newer producers are leading to enhanced average revenue per user gains for the business. Citi highlighted Xometry’s partnership with Siemens and believes that this specific collaboration is expected to bring significantly faster growth and profitability.

Xometry Inc. (NASDAQ:XMTR) is an AI-powered online manufacturing marketplace that connects buyers with suppliers of manufacturing services through an instant quoting engine. The company operates Thomasnet, which is a platform offering digital marketing services to manufacturers. The company also provides cloud-based systems, rapid prototyping, injection molding, 3D printing, sheet forming, and more.

While we acknowledge the potential of XMTR as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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