Kornit Digital, the Industrials sector company, was revisited by a Wall Street analyst today. Analyst James Ricchiuti from Needham maintained a Buy rating on the stock and has a $20.00 price target.
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James Ricchiuti has given his Buy rating due to a combination of factors including Kornit Digital’s better-than-expected third-quarter performance and promising growth in both its product and service sectors. The company reported a 5% year-over-year revenue increase, surpassing the market’s 2% growth expectation, and achieved an adjusted EBITDA margin of 2.1%, which was notably higher than the consensus estimate of -0.6%.
Additionally, Kornit Digital demonstrated strong progress in its Annual Recurring Revenue (ARR) model, with ARR climbing to $23.1 million from $18.9 million in the previous quarter. Despite a conservative revenue outlook for the fourth quarter, the company anticipates further improvements in EBITDA profitability. These factors suggest that Kornit Digital presents a compelling risk-reward opportunity, justifying the Buy rating.
Ricchiuti covers the Technology sector, focusing on stocks such as TTM Technologies, MKS, and IMPINJ. According to TipRanks, Ricchiuti has an average return of 15.2% and a 55.47% success rate on recommended stocks.