Analyst Gary Prestopino of Barrington maintained a Buy rating on Kadant (KAI – Research Report), with a price target of $243.00.
Gary Prestopino has given Kadant Inc. a Buy rating due to a combination of factors. Firstly, Kadant’s long-term outlook is optimistic, owing to its alignment with expanding end markets and the macro global trend of sustainable industrial processing. The company’s products and services improve efficiencies, optimize energy utilization, and enhance productivity in process industries. In 2022, Kadant’s business model generated a significant portion, 63%, of revenue from recurring parts and consumables sales.
Furthermore, market trends and secular factors like e-Commerce, demand for sustainable materials in packaging, residential housing demand, and global infrastructure needs are all driving Kadant’s growth. The company’s Flow Control and Industrial Processing segments are essential contributors to its business. Despite some challenges, such as a decline in bookings and execution timeline delays in capital projects, Kadant expects similar product demand levels to the second half of 2022, for the second half of 2023. This optimism, coupled with a stronger-than-expected first half of the year, led to an increase in Kadant’s guidance for 2023. These positive factors influenced Prestopino’s Buy rating for Kadant’s stock.
See the top stocks recommended by analysts >>
Based on the recent corporate insider activity of 39 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KAI in relation to earlier this year.
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Kadant (KAI) Company Description:
Kadant, Inc. engages in designing and manufacturing products used in industries ranging from paper to plastics and textiles to tires. It operates through the following segments: Papermaking Systems, Wood Processing Systems, and Fiber-based Products Business segments. The Papermaking Systems segment develops, manufactures, and markets equipments and products for the global papermaking, paper recycling, recycling and waste management, and other process industries. The Wood Processing Systems segment includes the development, manufacturing, and marketing of stranders and related equipment used in the harvesting of oriented strand board and lumber. The Fiber-based Products Business segment manufactures and sells biodegradable and absorbent granules from papermaking products. The firm’s products include alignment conveyor, tubular filter materials, and angleset indicator. The company was founded in November 1991 and is headquartered in Westford, MA.
Read More on KAI:
