Kornit Digital Ltd. (NASDAQ:KRNT) Just Reported, And Analysts Assigned A US$25.92 Price Target

Kornit Digital Ltd. (NASDAQ:KRNT) just released its latest second-quarter report and things are not looking great. Revenues missed expectations somewhat, coming in at US$50m, but statutory earnings fell catastrophically short, with a loss of US$0.17 some 55% larger than what the analysts had predicted. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Kornit Digital from six analysts is for revenues of US$214.2m in 2025. If met, it would imply an okay 3.2% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$223.2m and losses of US$0.16 per share in 2025. So we can see that while the consensus made a small dip in revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

Check out our latest analysis for Kornit Digital

The average price target fell 14% to US$25.92, withthe analysts clearly having become less optimistic about Kornit Digital'sprospects following its latest earnings. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Kornit Digital at US$32.00 per share, while the most bearish prices it at US$20.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Kornit Digital's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.4% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 2.6% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.8% annually. Not only are Kornit Digital's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kornit Digital's future valuation.

At least one of Kornit Digital's six analysts has provided estimates out to 2027, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Kornit Digital (at least 1 which is a bit concerning) , and understanding these should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.