Should you buy (AONE) SPAC stock ahead of the branded merger?

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AONE SPAC stock is up 21.5 percent from its IPO price of $ 10 per share. However, the stock is still down 20 percent from its 52-week high. On March 11, the stock rose 5.5 percent to close at $ 12.15.

AONE SPAC stock looks like a buy before the Markforged merger.

Currently, AONE SPAC stock is down 20 percent from its all-time high of $ 15.10 on February 25. So is the slump in AONE stock a good buying opportunity? Let’s dive into company reviews for a better understanding.

AONE valued Markforged at a pro forma implied equity value of $ 2.06 billion. At AONE’s current share price, Markforged is valued at approximately $ 2.51 billion. By comparison, Desktop Metal (DM) and Universal Display (OLED) have market caps of $ 4.25 billion and $ 10.45 billion, respectively.

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Markforged expects sales of $ 87.6 million in 2021 and forecasts sales growth of 39.9 percent in 2022 and 84.3 percent in 2023. The company expects sales of $ 705.8 million in 2025, which would translate into an EV-to-sales multiple of around 2.35 in 2025 x. Markforged’s adjusted EBITDA margin for 2025 of around 24.4 percent also looks good.

Markforged is valued at an EV-to-sales multiple of 2021 of around 18.9x. In comparison, Desktop Metal and Universal Display NTM have EV-to-sales multiples of 61.0x and 17.6x, respectively. In December 2020, Desktop Metal went public through a reverse merger with TRNE valued at $ 2.5 billion.

Markforged predicts the additive manufacturing industry is projected to hit $ 118 billion in 2029, compared to $ 18 billion in 2021. Given the company’s strong growth prospects and valuations, AONE stock looks like a good buy . However, the stock is a speculative game until the AONE and Markforged transaction is completed.

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