KRNT - Kornit Digital: Strong Margin Improvements But Muted Near-Term Growth Prospects

2024-02-14 23:16:31 ET

Summary

• Leading digital textile printing solutions provider Kornit Digital reported fourth-quarter and full-year 2023 results largely in line with management's projections.
• System sales continue to be impacted by macroeconomic and industry-specific headwinds.
• On the flip side, healthy demand for consumables and ongoing cost-cutting efforts resulted in non-GAAP gross margins reaching new two-year highs.
• Unfortunately, business headwinds are expected to persist for the time being thus resulting in only modest growth expectations for this year and the decision to double down on cost savings initiatives.
• Reducing estimates and price targets but reiterating my "Buy" rating on the shares. Following Wednesday's rally, investors should consider waiting for a pullback to initiate or add to existing positions.

Note:

I have covered Kornit Digital Ltd. ( KRNT ) previously, so investors should view this as an update to my earlier articles on the company. ...

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