Stifel's analyst, Stephen Gengaro, recently revised the price target for DMC Global (BOOM, Financial), reducing it from $9 to $8.50. The adjustment follows the company's Q1 performance, which surpassed expectations, and its consistent guidance for Q2. Despite this, the price target was cut to account for potential margin challenges and a cautious perspective on U.S. land activity. The analyst maintains a Hold rating on the stock, noting that the company's management is making noteworthy progress in optimization efforts.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for DMC Global Inc (BOOM, Financial) is $10.25 with a high estimate of $12.00 and a low estimate of $8.50. The average target implies an upside of 38.89% from the current price of $7.38. More detailed estimate data can be found on the DMC Global Inc (BOOM) Forecast page.
Based on the consensus recommendation from 3 brokerage firms, DMC Global Inc's (BOOM, Financial) average brokerage recommendation is currently 2.7, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for DMC Global Inc (BOOM, Financial) in one year is $15.83, suggesting a upside of 114.5% from the current price of $7.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the DMC Global Inc (BOOM) Summary page.
BOOM Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- DMC Global Inc (BOOM, Financial) reported a 5% sequential increase in consolidated first-quarter sales, reaching $159.3 million.
- Adjusted EBITDA attributable to DMC increased by 39% from the previous quarter, indicating improved profitability.
- Arcadia, the architectural building products business, saw a 9% sequential sales increase, driven by strong commercial exterior storefront and interior framing systems sales.
- Dyna Energetics launched a second-generation Dyna Stage perforating system and completed a major automation initiative, expected to enhance production capacity and efficiency.
- NobelClad's first-quarter sales were up 5% year over year, indicating resilience despite tariff-related uncertainties.
Negative Points
- Dyna Energetics experienced a 16% year-over-year decline in sales due to pricing adjustments in response to a downturn in the US onshore energy market.
- NobelClad's order backlog decreased from $49 million to $41 million, reflecting customer hesitancy due to tariff uncertainties.
- Arcadia's future project billings are expected to decline due to the completion of a large mixed-use project in California.
- The luxury residential market demand has significantly declined, impacting Arcadia's results due to high interest rates and macroeconomic uncertainty.
- DMC Global Inc (BOOM) anticipates lower second-quarter sales, ranging from $149 to $157 million, influenced by macroeconomic concerns and tariff policies.
