Kornit Digital: Positioned for Growth with Innovative Technology and Expanding Market Potential

Analyst Erik Woodring from Morgan Stanley maintained a Buy rating on Kornit Digital (KRNT – Research Report) and increased the price target to $30.00 from $22.00.

Erik Woodring has given his Buy rating due to a combination of factors that highlight Kornit Digital’s potential for growth and innovation. Despite mixed first-quarter results and challenging macroeconomic conditions for small and medium-sized businesses, management remains optimistic about year-over-year growth, margin expansion, and positive cash flow from operations. Notably, Kornit Digital has achieved an impressive 80% of its revenue from recurring sources, a rarity in the printing industry, and has set a new record for impressions with a 10% year-over-year increase.
Furthermore, interest in Kornit Digital’s new Apollo model is growing, with the potential to significantly expand the company’s serviceable addressable market. This model could unlock a market 20 times larger than Kornit’s current impression base. Woodring emphasizes that Kornit Digital is a unique player with differentiated technology, benefiting from trends like re-shoring and near-shoring. With a price target increase to $30 and a bull case of $48, Kornit Digital remains a favored small-cap stock with substantial upside potential.

According to TipRanks, Woodring is a 3-star analyst with an average return of 2.4% and a 55.98% success rate. Woodring covers the Technology sector, focusing on stocks such as Apple, Seagate Tech, and Dell Technologies.