Nano Dimension stock prediction as shares rise on strong revenue growth

On Wednesday, Nano Dimension Ltd (TLV:NNDM) shares advanced by more than 10% after releasing its most recent quarterly results. The company reported its fiscal third-quarter revenue and earnings before markets opened, with the top-line growing by 204% from the same quarter last year.

The company posted FQ3 GAAP earnings per share of -$0.07, while revenue for the quarter came in at $1.34 million. The company provides additive electronic components in Israel and internationally. 

One of its leading products is the DragonFly lights-out digital manufacturing (LDM) system, a precision system for producing professional multi-layer circuit boards, sensors and radio frequency antennas, among others.

Is Nano Dimension overvalued?

From a valuation perspective, Nano shares trade at a steep P/S ratio of 316.62, making the stock too expensive for value investors. However, its P/B ratio of about 0.92 could be an exciting option for some investors.

On the other hand, analysts also expect its earnings to grow by 52.50% this year, in line with the current annual average of about 50.80% achieved over the last five years.

Technically, Nano Dimension shares appear to be trading within a descending channel formation in the intraday chart. However, the stock recently found the trendline support, triggering a rebound.

Therefore, investors could target extended rebound profits at about $5.59, or higher at $6.21, while $4.51 and $4.00 are crucial support zones.

In summary, although Nano Dimension stock seems significantly overvalued, its post-earnings rebound could continue for the foreseeable future.