Shares in additive printing company AML3D Ltd (ASX: AL3) are a little unloved at the moment, sitting a hefty 64% lower than they were a year ago.
But the analysts at Shaw and Partners have recently run the ruler over the ASX small cap company and have come up with a bullish share price target, albeit one which has taken a hair cut from previous forecasts.
We'll get to that share price target shortly.
First let's look at what the company has announced recently.
Solid build up in the order book
AML3D recently put out a quarterly report which showed that their order book peaked at $29 million during the past financial year, with $20 million of that being new work which was signed during the period.
Cash receipts of $10.4 million were up 20% on the prior year, and $16.8 million worth of orders are rolling over into the current year.
The company said:
AML3D's order book peaked at a record $29.0 million during FY26. This strong performance was driven, in the main, by the continuing success of the US Scale Up strategy, which also underpins the global sales pipeline, estimated to be $78 million on 30 June 2026. To ensure AML3D has the capacity to meet the accelerating growth in the US, the $12 million investment program to double the additive manufacturing (AM) capacity at AML3D's Technology Centre in Stow, Ohio continued during 4Q26. The expansion of Stow also positions AML3D to take advantage of the continuing strong demand signals across the US Navy Maritime Industrial Base (MIB). The MIB includes submarines, aircraft carriers, surface ships, and munitions.
AML3D said Newport News Shipbuilding ordered two of its ARCEMY systems suring the year, then followed that up with an order for four more.
The company also installed a portable ARCEMY system for use by Austal Ltd (ASX: ASB) in its US operations.
AML3D also during the fourth quarter appointed US Navy Rear Admiral David Goggins, retired, to its board.
Shares are looking cheap at current levels
Shaw and Partners said in its research note on AML3D that it expects the company to reach $100 million in revenue in FY32, compared to FY30 previously.
The broker has therefore reduced its price target on the company from 40 cents to 30 cents. This is still well above the current price of 9.7 cents.
Shaw and Partners said the company was trading at a discount to all of its ASX additive manufacturing peers and has, "proprietary technology that supports competitive differentiation presents AL3 as a compelling investment opportunity''.
AML3D is valued at $55.6 million.
The post This ASX small cap defence stock could triple in value: Broker appeared first on The Motley Fool Australia.
Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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