- Leading digital textile printing solutions provider Kornit shocked investors with a weaker-than-expected near-term outlook.
- Kornit pointed to muted demand from e-commerce customers as the main reason behind the slowdown.
- On the conference call, management admitted to increasing competitive threats with two of the company's larger customers having partially shifted to non-Kornit technology.
- While management expects a much stronger second half with vastly improved profitability, I am downgrading shares to "hold" given increased uncertainties with regards to the company's future growth rate.
For further details see:
Kornit Digital: Shares Crater On Weaker Customer Demand And Competitive Pressures