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Investing.com - Cantor Fitzgerald reduced its price target on Kornit Digital Ltd . (NASDAQ:KRNT) to $28.50 from $30.00 on Thursday, while maintaining an Overweight rating on the stock. The stock, currently trading at $13.97, has declined nearly 24% in the past week and 47% over the last six months. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculations.
The research firm views Kornit Digital as well-positioned to benefit from retailers and brands shifting toward on-demand fulfillment using the company’s print technology for mass production and its expanding go-to-market strategy.
Cantor Fitzgerald highlighted the rollout of Kornit’s all-inclusive clicks (AIC) business model as a positive factor in its assessment, describing the company as a leading player in sustainable, on-demand digital fashion and textile production technologies.
The firm sees significant growth opportunities as Kornit expands from custom design to on-demand mass production, with adjacent markets like home decor and footwear providing long-term growth potential.
The new $28.50 price target is based on an EV/Sales multiple of 3.5x Cantor’s 2026 sales estimate of $226.8 million, considering $488.6 million in net cash and 45.2 million shares outstanding.
In other recent news, Kornit Digital reported its first-quarter results, showing a 6.1% year-over-year revenue increase to $46.5 million, which aligned with analyst expectations. The company posted an adjusted earnings per share of $0.01, slightly surpassing the breakeven estimates from analysts. However, Kornit Digital recorded an adjusted EBITDA loss of $3.9 million, resulting in an EBITDA margin of -8.4%. Despite these figures, Needham raised Kornit Digital’s stock target to $30, maintaining a Buy rating, following the company’s performance that was within its guidance range. Kornit Digital also provided a mixed outlook for the second quarter, projecting a 7% revenue growth at the midpoint, slightly below the consensus estimate of 9%.
Additionally, Kornit Digital has entered into a strategic partnership with MAS Holdings to enhance sustainable and on-demand fashion production. This collaboration aims to improve profitability and sustainability for MAS’s customers, retailers, and brands. MAS Holdings is known for its partnerships with major global brands like Nike (NYSE:NKE) and Victoria’s Secret. These recent developments reflect Kornit Digital’s ongoing efforts to innovate within the fashion industry.
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