- Maggio 10, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
We’ll start with a tech firm in the textile industry. Kornit bills itself as a global digital printing company, specializing in high-speed, industrial-grade ink jet printers, along with pigments and chemical products, for the garment, apparel, home goods, and decorating sectors. The company’s machines are capable of printing complex designs directly onto finished textiles, allowing fabric workers to call up patterned textiles on demand. This frees up inventory space and eliminates redundancies, important considerations for Kornit’s customer base.
One number will suffice to show the scale of Kornit’s work and niche: there are more than 150 million garment designs printed every year on Kornit machines. The company coordinates this work through 5 global offices in New Jersey, Miami, Dusseldorf, Hong Kong, and Shanghai.
The company will report its 1Q22 financial results this Wednesday, May 11, but we can get a good feel for its current situation by looking back at the previous quarters. In the second half of 2021, Kornit saw solid revenue numbers, with the Q4 figure of $87.5 million being a company quarterly record. The full-year top line for 2021 was $322 million, up 67% year-over-year. The company was profitable, with a 2-cent GAAP earnings per diluted share in the quarter, and 13 cents for the full year.
Despite these positive metrics, the company’s stock is down 58% so far this year. However, 5-star analyst James Ricchiuti, from Needham, doesn’t flinch from Kornit’s recent share price losses. In fact, he rates the stock a Buy, along with a $155 price target. The figure implies shares will be valued ~141% higher in a year’s time.
Backing his bullish stance, Ricchiuti writes: “We believe the long-term secular drivers that underpin our positive investment thesis on Kornit are intact… We believe business remains healthy, notwithstanding increased macro uncertainty. We still foresee strong tailwinds in KRNT’s business in 2022 and 2023, driven by positive momentum with its largest customers, the growing near-shoring trend and emphasis on sustainability by apparel makers, along with a rich new-product pipeline.”
Overall, with 7 recent positive reviews on file, Kornit’s stock has a unanimous Strong Buy consensus rating from the Wall Street analyst corps. The shares are selling for $64.19 and their $151.71 average price target implies a one-year upside potential of ~136%.
