Kornit Digital (KRNT) Stock Forecast & Price Target

Kornit Digital Ltd has provided optimistic revenue guidance for Q2, projecting revenues between $49.0 million and $55.0 million, representing a year-over-year increase of 7% at the midpoint. The company's Annual Recurring Revenue (ARR) has shown significant growth, rising to $21.5 million at the end of September from $18.9 million at the end of June, with expectations for further increases in Q4 due to shifting deals and scaling of its AIC program. Additionally, the number of impressions in the trailing twelve months (TTM) increased to 232 million, reflecting a 5% year-over-year growth, which bodes well for future revenue potential.

Kornit Digital Ltd is facing challenges reflected in a decline in its gross margin, which decreased to 45.8% from 50.3% a year ago, primarily due to inventory-related adjustments, tariffs, and lower service margins. Despite maintaining tight control over operating expenses, which totaled $25.8 million, the company's EBITDA margin remains marginal at +2.1%. Additionally, the company's fourth-quarter revenue guidance appears weak, showing a projected decline of 4% year-over-year at the midpoint, suggesting possible difficulties in achieving revenue growth.