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Thursday’s trading session may see Kornit Digital Ltd . (NASDAQ:KRNT) shares react to a new price target set by Needham, which has been increased to $30.00 from the previous $28.00. The firm retains a Buy rating on the stock. According to InvestingPro data, the stock has shown significant momentum with a 15.2% gain over the past week, though it remains below its 52-week high of $34.28. The adjustment follows Kornit Digital’s first-quarter performance, which, although not fully meeting analysts’ growth expectations, was within the provided guidance range.
Kornit Digital reported a 6% year-over-year increase in Q1 revenues, marginally missing the anticipated 8% growth. The company also recorded an adjusted EBITDA loss of $3.9 million, resulting in an EBITDA margin of -8.4%, which was slightly more than the consensus estimate of -7.2%. Despite these figures falling short of expectations, the company’s outlook for the second quarter remains robust, with a projected revenue growth of 7% at the midpoint, which is just under the consensus estimate of 9%. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 11.93 and minimal debt, suggesting ample liquidity to fund its growth initiatives.
The positive market response to Kornit Digital’s new Apollo high-volume production system and the success of the All-Inclusive Click (AIC) program have continued to drive demand. The AIC program’s contribution to the company’s performance is evident in its reported annual recurring revenue (ARR) of $14.5 million for the first quarter.
Looking ahead, Needham has maintained its revenue estimate for Kornit Digital for the year 2025 and has slightly increased its projection for 2026. The firm’s reiteration of the Buy rating underscores its confidence in Kornit Digital’s market position and growth trajectory, despite the minor setbacks in the first quarter. Investors will be watching closely to see if the company can meet its Q2 targets and sustain the momentum generated by its innovative product offerings and service models. InvestingPro subscribers can access 12 additional key insights about Kornit Digital, including detailed analysis of its Fair Value and comprehensive financial health metrics in the Pro Research Report, helping investors make more informed decisions about this evolving growth story.
In other recent news, Kornit Digital reported its first-quarter results, which met expectations but did not generate significant excitement among investors. The company posted adjusted earnings per share of $0.01, slightly surpassing analyst estimates of breakeven, with revenue reaching $46.5 million, aligning closely with the consensus forecast of $46.47 million and marking a 6.1% increase year-over-year. For the upcoming second quarter, Kornit Digital projects revenue between $49 million and $55 million, with the midpoint slightly below analyst expectations of $52.92 million. The company’s gross profit margin showed improvement, rising to 42.6% on a GAAP basis from 32.3% in the previous year, while the non-GAAP gross margin increased to 45.2% from 37.5%. Kornit reported annual recurring revenue from AIC contracts of $14.5 million, indicating strong initial adoption of this new business model. CEO Ronen Samuel emphasized the company’s commitment to transforming the fashion industry despite operating in an uncertain macro environment. The company’s mixed guidance for the second quarter reflects ongoing challenges as it continues to lead the digital transformation of the apparel sector. Analyst feedback and investor reactions suggest cautious optimism as the company navigates these market conditions.
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