Needham & Company analyst James Ricchiuti reiterated a Buy rating and $18 price target on Kornit Digital Ltd. (NASDAQ: KRNT) following Q2 EPS that was above the consensus added by lower OpEx.

Ricchiuti commented, "KRNT after the close posted stronger than expected Q2 EPS, benefiting from lower op-exp. Rev increased 35% y/o/y, above the midpoint of guidance. KRNT's high-throughput direct to garment (DTG) products continue to drive growth. We have increased confidence that the new Allegro roll-to-roll (R2R) printer can emerge as another growth catalyst over the next year. We are nudging up our 2015 and 2016 EPS estimates even as operating expense ramps as KRNT continues to scale the business. We believe KRNT can grow in excess of 30% annually over the next several years, with steadily improving profitability."

The firm is maintaining Q3 non-GAAP EPS estimate at $0.08, with 2015 non-GAAP EPS now estimated at $0.28 vs. prior $0.25 est. They are raising 2016 non-GAAP EPS estimate to $0.38 from $0.37.

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Shares of Kornit Digital Ltd. closed at $14.97 yesterday.