Analyst James Ricchiuti of Needham maintained a Buy rating on Kornit Digital, reducing the price target to $25.00.
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James Ricchiuti has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Kornit Digital. Despite the company’s Q2 results falling short of expectations and a softer Q3 outlook, there are positive indicators that suggest potential growth. Kornit Digital’s annual recurring revenue (ARR) of $18.9 million in Q2 is anticipated to increase in the second half of the year, setting a promising foundation for 2026.
Additionally, the company has managed to double its systems business in Q2, indicating strong underlying demand. While the Q3 revenue growth guidance is below consensus, Kornit Digital is targeting adjusted EBITDA profitability by 2025. These factors contribute to a favorable risk-reward scenario at current stock levels, supporting the Buy recommendation.
Ricchiuti covers the Technology sector, focusing on stocks such as Bel Fuse Inc, Cognex, and IPG Photonics. According to TipRanks, Ricchiuti has an average return of 9.4% and a 52.81% success rate on recommended stocks.