William Blair analyst Ross Sparenblek has maintained their bullish stance on KAI stock, giving a Buy rating on July 18.
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Ross Sparenblek has given his Buy rating due to a combination of factors including Kadant’s strong second-quarter performance, which exceeded expectations in both revenue and adjusted EPS. The company reported a 7% year-over-year increase in total bookings, with capital equipment bookings growing significantly by 22%. This growth contributed to a robust backlog, indicating a positive outlook for future demand.
Additionally, Kadant’s parts and consumables sales demonstrated sustained midsingle-digit growth, leading to an adjusted gross margin that outperformed consensus expectations. Despite some concerns about weaker third-quarter guidance, the overall demand environment appears to be recovering, supported by a positive book-to-bill ratio and signs of diminishing tariff impacts. These factors collectively suggest a favorable macroeconomic backdrop, reinforcing the Buy rating.
According to TipRanks, Sparenblek is a 4-star analyst with an average return of 18.5% and a 96.43% success rate. Sparenblek covers the Industrials sector, focusing on stocks such as JBT Marel, Kadant, and Federal Signal.
In another report released on July 18, TR | OpenAI – 4o also upgraded the stock to a Buy with a $373.00 price target.