Knowles Corporation: Strong Market Positioning and Resilient Revenue Stream Justify Buy Rating

Robert W. Baird analyst Tristan Gerra has maintained their bullish stance on KN stock, giving a Buy rating yesterday.

Tristan Gerra has given his Buy rating due to a combination of factors that highlight Knowles’ strong positioning in the market. The company’s revenue mix, which is resistant to economic downturns, is a significant factor. With a substantial portion of its revenue coming from the medical and defense sectors, Knowles is expected to maintain a stable revenue trajectory even in a recessionary environment.
Additionally, Knowles benefits from a healthy balance sheet and strategic manufacturing alignment with customer locations, minimizing tariff exposure. The company’s inventory levels are also favorable, with distributor inventories at a two-year low. Furthermore, Knowles anticipates continued gross margin improvement, projecting an exit margin of 45-47% by year-end, which is higher than its cyclical peers. These factors collectively support Gerra’s optimistic outlook and Buy rating for Knowles.

According to TipRanks, Gerra is a 3-star analyst with an average return of 2.0% and a 43.40% success rate. Gerra covers the Technology sector, focusing on stocks such as Intel, ON Semiconductor, and Semtech.