Velo3D Inc (NASDAQ:VELO) shares are trading lower Thursday as investors weigh a bearish short report from Morpheus Research against a bullish new analyst call from Needham, which initiated coverage on the additive manufacturing company with a Buy rating and $33 price target. Here’s what investors need to know.
- Velo3D stock is taking a hit today. What’s pressuring VELO stock?
Morpheus Research Levels ‘Illusion’ Allegations Against Velo3D
The short seller alleged Velo3D’s rally has been driven by an "illusion" tied to overhyped aerospace and defense opportunities, a diminished relationship with SpaceX and questions surrounding CEO Arun Jeldi’s background and business history.
“We believe it’s only a matter of time before investors see Velo3D for what it is: an obvious promotional grift orchestrated by a CEO with a wildly exaggerated resume that appears to be almost completely fabricated, a track record of business blow-ups and litigation, and no experience running a public company,” the short seller wrote.
Velo3D did not immediately respond to Benzinga’s request for comment.
Morpheus said its investigation included interviews with former employees, customers and industry experts. The firm alleged SpaceX has not purchased a Velo3D printer since 2022 and claimed a 2024 intellectual property license agreement allows SpaceX to manufacture printers internally.
The report also questioned Velo3D’s defense pipeline, including previously announced agreements with Momentus, the Department of War and the Defense Logistics Agency. Morpheus argued several of the deals carry limited guaranteed revenue or have yet to produce meaningful financial contributions.
Morpheus also cited Velo3D’s valuation, losses, executive turnover, material weaknesses in internal controls and shareholder dilution as additional risks.
Needham Contrasts Short Seller With Bullish VELO Call
On the bullish side, Needham analyst Austin Bohlig on Thursday initiated coverage on Velo3D with a Buy rating and a $33 price target. Bohlig said Velo3D is positioned to benefit from rising aerospace and defense manufacturing demand as the company shifts toward its Rapid Production Solutions model.
“We believe the company’s leading metal additive manufacturing platform is becoming a critical enabling technology for the reindustrialization of the U.S. aerospace and defense (A&D) industrial base,” the analyst wrote.
Needham expects revenue to grow from $46 million in 2025 to $65 million in 2026 and $80 million in 2027, driven by stronger system sales and growth in the company’s higher-margin production services business.
The firm also expects Velo3D to reach adjusted EBITDA profitability in 2028 as revenue growth accelerates and the RPS segment scales.
VELO Shares Slide Thursday Afternoon
VELO Price Action: Velo3D shares were down 4.16% at $17.30 at the time of publication on Thursday, according to Benzinga Pro data.
Image created using artificial intelligence via Gemini.
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