Kornit Digital downgraded to Equal Weight at Morgan Stanley amid transformation

As previously reported, Morgan Stanley analyst Erik Woodring downgraded Kornit Digital (KRNT) to Equal Weight from Overweight with a price target of $15, down from $20. Kornit remains at the forefront of digital textile printing, but the shift from a capex to opex model will dampen growth prospects over the next 12 to 24 months, the analyst tells investors. This accelerating transformation will take time to play out, like most transactional to contractual shifts have, which likely puts a cap on valuation, the analyst contends.