Gary Prestopino, an analyst from Barrington, maintained the Buy rating on Kadant. The associated price target remains the same with $380.00.
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Gary Prestopino has given his Buy rating due to a combination of factors, including Kadant’s strong financial performance in Q2/25, which exceeded expectations. The company reported revenue of $255 million, adjusted EBITDA of $52 million, and adjusted EPS of $2.31, surpassing both Barrington’s and consensus estimates. This strong performance was driven by increased capital equipment orders and solid aftermarket parts demand, particularly in North America.
Additionally, Kadant’s operating cash flow and free cash flow saw significant increases, and the company managed to reduce its long-term debt by $28 million. The backlog at the end of the quarter also grew by 16% to $299 million, indicating strong future demand. Despite a slight decline in overall revenue, the company’s parts and consumables revenue increased, contributing to a favorable outlook. These factors, combined with the company’s stable guidance for sales and adjusted EPS, support the Buy rating.
According to TipRanks, Prestopino is a 5-star analyst with an average return of 14.0% and a 54.79% success rate. Prestopino covers the Consumer Cyclical sector, focusing on stocks such as Liquidity Services, Dorman Products, and OPENLANE.
In another report released today, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $403.00 price target.