Craig-Hallum upgrades Kornit Digital to Buy as estimates finally reset

As previously reported, Craig-Hallum analyst Greg Palm upgraded Kornit Digital to Buy from Hold with a $23 price target as estimates are finally reset with increased focus on profitability/cash flow. Given credibility concerns and a string of downward revisions over the past few years, this is a major event that can help turn overall investor sentiment, in the firm’s view. Even in a challenging macro, Craig-Hallum sees continued growth in the company’s recurring revenue base, which consists of consumables and service revenue. With an aggressive buyback and outsized cash position, the firm believes the risk/reward is too attractive to ignore.