Needham & Company Remains Bullish on Kornit Digital (KRNT) as Electronics for Imaging (EFII) Enters digital Textile Printing Market

Needham & Company reiterates a Buy rating and $18.00 price target on Kornit Digital Ltd. (NASDAQ: KRNT) after Electronics for Imaging (EFII) entered the digital textile printing market last week. Analyst James Ricchiuti sees limited overlap with Kornit.

Ricchiuti commented, "Electronics for Imaging (EFII, NR), a leading supplier of wide-format printers, entered the digital textile printing market late last week with the acquisition of Reggiani, a digital roll-to-roll (R2R) printing equipment supplier. We see limited overlap with Kornit as its new Allegro R2R printer is based on proprietary neopigment ink technology, while Reggiani is mainly an equipment supplier with reactive and dispersion dye inks that come primarily from third parties. We believe the two companies are also addressing different segments of the R2R market. The main revenue driver that we see for the KRNT story over the next 2 years remains its direct-togarment (DTG) business, with a modest contribution from the Allegro printer in 2016. In 2017, we believe R2R will join DTG as an important growth catalyst. We reaffirm our Buy rating."

For an analyst ratings summary and ratings history on Kornit Digital Ltd. click here. For more ratings news on Kornit Digital Ltd. click here.

Shares of Kornit Digital Ltd. closed at $13.34 yesterday.

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