12:10 PM EDT, 09/13/2024 (MT Newswires) -- Kornit Digital ( KRNT ) provided greater clarity on its improving fundamentals at its Analyst Day, Morgan Stanley said in a report.

"With better order visibility, and a path to greater recurring revs and higher margins, we have even greater conviction in reaccelerating fundamentals," the report said. "Favorable market trends, tech innovation leading to TAM expansion, a product cycle, and new delivery models support a return to profitable growth."

Kornit outlined its path to "mid-teens" annual revenue growth and a 25% adjusted EBITDA margin by 2028-2030, the report said. That's higher than Morgan Stanley's prior forecasts of 11% revenue growth and less than 12% adjusted EBITDA margins by 2030.

Morgan Stanley said it raised its five-year growth and margin forecasts for the printing company "materially" amid favorable market trends, key advancements in technology, better pipeline visibility, and new delivery models. It now forecasts calendar year 2030 revenue of $406 million, up from $372 million previously, and adjusted EBITDA margin of 24% versus prior 11.8%.

Morgan Stanley raised its price target to $26 from $20 while reiterating its overweight rating on the stock.

Price: 23.08, Change: +0.19, Percent Change: +0.83