Shares of Nano Dimension climbed over 110 percent on Monday after the company achieved US government-certified vendor status.
According to the company, it has received a Commercial and Government Entity (CAGE) code from the US Department of Defense’s Defense Logistics Agency.
Nano Dimension says in its announcement that as a registered and approved vendor, it is positioned to pursue and conduct business directly with the US federal government and its many agencies, particularly the Department of Homeland Security and other US defense entities.
“As a recognized US government additive manufacturing supplier for defense projects, our DragonFly 2020 Pro 3D printer may play a crucial role in projects such as keeping risks down and solving complex design challenges, while speeding the R&D process up significantly,” Amit Dror, CEO of Nano Dimension, says in the release.
The company also states that that it has sold a DragonFly 2020 Pro 3D printer to a top 10 defense company based in the US, making it the second such sale to the same customer.
In addition, Dror notes that the company is looking to open the door to more companies that are keen to embrace NanoDimension’s 3D printed electronics technology, as he believes that these companies can benefit from significant time and cost savings.
According to research by SBWire, the 3D printing in aerospace and defense market is estimated to grow at a compound annual growth rate of 20 percent during the forecast period of 2018 to 2025.
Nano Dimension stresses in its press release that the defense sector is a key market for additive manufacturing technologies. The DragonFly 2020 Pro 3D printer lets designers and engineers 3D print metal and polymer simultaneously.
Following Monday’s announcement, NanoDimension closed the day at US$2.80 and was up 110 percent over the one-day trading period.
The stock has a “moderate buy” ranking on TipRanks with an average target price of US$4.50, a high estimate of US$7 and a low of US$2. Nano Dimension also has a “buy” ranking on TradingView with 14 verticals in favor, eight in neutral and four against it.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Nano Dimension is a client of the Investing News Network. This article is not paid-for content.