Karat Packaging downgraded to Hold from Buy at Truist

Truist downgraded Karat Packaging to Hold from Buy with a price target of $28, down from $34. Following another sale guidance miss, the firm sees continued risk to expectations given macro demand pressures, continued product price declines, execution risk, freight rate volatility, and the potential impact of broad based tariffs. The analyst cites limited visibility into key drivers to the business for the downgrade.