KRNT - Kornit Digital: No Near-Term Catalysts But Upgrading To 'Hold' On Bargain Valuation
2023-03-21 20:43:58 ET
Summary
- Last month, the company reported mediocre fourth quarter results and provided a cautious outlook for 2023.
- With key system sales expected to remain weak, overall revenue is likely to be down for the second year in a row.
- While management has implemented cost-cutting measures including a 10% workforce reduction, Kornit is unlikely to return to profitability this year.
- Discussing recent changes to the company's forward guidance approach.
- While the stock is lacking a near-term catalyst, I am upgrading Kornit Digital's shares from "Sell" to "Hold" due to the company's pristine balance sheet and bargain valuation.
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Kornit Digital: No Near-Term Catalysts But Upgrading To 'Hold' On Bargain Valuation