Morgan Stanley has adjusted its valuation on Kornit Digital Ltd. (NASDAQ:KRNT), raising the price target to $17.00 from $15.00 while keeping an Equalweight rating on the equity. The revised target sits slightly under Kornit’s recent trading price of $17.68.
The broker's move follows what it described as "clear progress" in the company's most recent results. Morgan Stanley pointed to solid near-term execution, accelerating growth in impressions and an ongoing shift toward ratable, recurring revenue as the key constructive developments behind the price-target increase.
Despite those operational improvements, Morgan Stanley retained its neutral stance. The firm said growth for the digital printing technology group is "not inflecting quite yet," and it expects any meaningful acceleration to materialize in 2027 and beyond. That delayed timing, the firm added, is likely to act as a constraint on the stock's valuation potential and was a reason for maintaining the Equalweight rating even as the target rose.
The company has not been profitable over the trailing twelve months, reporting an EPS of -$0.28. According to InvestingPro data cited with the company, analysts are projecting a swing to profitability this year, with a forecasted EPS of $0.26. InvestingPro metrics also indicate Kornit appears slightly overvalued relative to its Fair Value.
Kornit Digital recently reported fourth-quarter 2025 results, posting revenue of $58.9 million, which was in line with the company’s guidance. The earnings release emphasized the company’s transition toward a recurring revenue model and highlighted continued product innovations in its digital printing technologies.
Analysts have noted Kornit’s outlook for 2026 shows expected low single-digit revenue growth. The earnings announcement and the surrounding commentary appear to have had a positive effect on investor sentiment, though no analyst upgrades or downgrades were reported in connection with the results. No mergers or acquisitions were disclosed in those reports.
Morgan Stanley summarized its view by saying Kornit presents a "positive risk/reward skew," even as it stopped short of recommending an overweight position. The broker’s assessment balances the company’s operational improvements and strategic progress against the projected timing of durable growth and current valuation measures.
Market performance and valuation notes
The stock has seen a sharp move lower over the last year, trading down about 51% over the prior 12-month period. More recently, the share price recorded a modest rebound, gaining roughly 3% over the past week.
InvestingPro data used in the coverage indicates a modest overvaluation versus Fair Value, a factor that also appears to inform Morgan Stanley’s decision to keep a neutral rating despite raising the price target.
What remains in focus
- Execution against the shift to ratable, recurring revenue and how quickly that transition supports margin and cash-flow improvements.
- Whether impressions growth sustains its current acceleration and when that translates into materially higher revenue growth beyond the firm’s current 2026 outlook.
- Analyst expectations for profitability in the current year and how those forecasts hold up against quarterly results.