William Blair analyst Brian Drab has maintained their bullish stance on KRNT stock, giving a Buy rating yesterday.
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Brian Drab has given his Buy rating due to a combination of factors that suggest potential for future growth and stability for Kornit Digital. Despite the company’s initial revenue outlook for 2026 being lighter than expected, there is upside potential as indicated by the 14% sequential increase in annual recurring revenue. This growth in ARR suggests that Kornit is gaining customer traction, which positions the company for improved stability in 2026 and potentially stronger performance in 2027.
Furthermore, while the adjusted gross margin saw a decline due to inventory adjustments and tariff costs, the company continues to report positive earnings with an adjusted EBITDA of $1 million. The increase in impressions on a trailing-12-months basis and the expected growth rate in the fourth quarter, supported by more Apollo systems, also contribute to the positive outlook. These factors collectively underpin Brian Drab’s confidence in Kornit’s ability to enhance its market position and financial performance, justifying the Buy rating.
According to TipRanks, Drab is a 5-star analyst with an average return of 22.6% and a 68.18% success rate. Drab covers the Industrials sector, focusing on stocks such as Thermon Group Holdings, Kornit Digital, and Xometry.