Shares in 6K Additive Ltd (ASX: 6KA) are down 32% over the past year, but according to the analyst teams at both Morgans and Bell Potter, the stock is oversold at the moment.
Both brokers have very bullish share price targets for the company, which we'll get to shortly, but first, let's see what the company has had to say recently.
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Solid second-quarter results
6K additive supplies the metals and powders that are used in 3D printing, and its products are in demand from sectors such as defence and aerospace.
The company earlier this week reported quarterly sales of US$7.1 million for the second quarter, up 63% over the same quarter last year, and up 14% quarter on quarter.
The company's order backlog was US$11.9 million, up 23% on the prior quarter, and the company was in a strong cash position with US$22.1 million on hand.
6K Additive Chief Executive Officer Frank Roberts said:
The second quarter of 2026 demonstrated continued execution across the business, highlighted by record quarterly revenue, strong order intake, and expanding customer demand across our advanced materials portfolio. While we are pleased with the operational and commercial progress achieved during the Quarter, we believe the more significant story is the strategic position 6K Additive is building for the years ahead. The United States is entering a sustained period of investment in defence, advanced manufacturing, and supply chain resilience. As government and industry increasingly prioritise secure, domestic sources of critical materials, the reshoring of strategic manufacturing is creating a structural demand tailwind that extends well beyond traditional market cycles. We believe 6K Additive is uniquely positioned to benefit from these trends through our domestic production capabilities, qualified aerospace and defence materials, and expanding portfolio of critical metal powders.
Mr Roberts said the company was continuing to invest in additional production capacity to capitalise on the demand, positioning it for its next phase of growth.
6K Additive shares looking cheap
Bell Potter said in their research report that 6K Additive had a competitive advantage through its US-based production facilities.
They added:
We expect Additive Manufacturing to be a beneficiary of the US Department of War's Acquisition Transformation Strategy to support rebuilding the country's Defense Industrial Base. Expanded capacity should support a step-change in revenues and earnings from CY27.
Bell Potter increased its price target on 6K Additive shares from $1.45 to $1.50, compared to 68 cents at the time of writing.
Morgans said the company was executing well and echoed Bell Potter's view that it was well-placed to benefit from the US' aim to reshore critical minerals production.
Morgans has a price target of $1.31 on the shares.
