Knowles’s Growth Potential and Strategic Transformation Drive 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’s strong potential for growth and profitability. The company’s ongoing transformation and the ramp-up of specialty film production are expected to drive revenue to the high end of the target range for the upcoming year. This growth is supported by strong bookings and a robust backlog, particularly in the defense and distribution sectors, which are anticipated to contribute significantly to the company’s performance.
Furthermore, despite an initial decline in gross margin due to higher fixed overhead and initial production costs, Knowles is projected to achieve year-over-year gross margin expansion in the latter half of 2026 as production yields normalize. The energy customer ramp is on track to generate substantial revenue, contributing to the company’s long-term growth prospects. Additionally, Knowles’s recent quarterly results have exceeded expectations, with revenue and earnings per share surpassing guidance, reinforcing confidence in the company’s strategic direction and financial health.

Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KN in relation to earlier this year.