In a report released today, Christopher Howe from Barrington reiterated a Buy rating on Kadant Inc (NYSE: KAI), with a price target of $112. The company’s shares opened today at $95.15.
Howe noted:
“We anticipate the company to achieve steady but opportunistic revenue growth, EBITDA margin expansion of a couple hundred bps and earnings growth of double digits over the next few years, while continuing to generate a high level of free cash flow. While the current pricing environment is inflated, management is keenly focused on the right acquisitions that fit within its criteria: 1) provides highly engineered products within mission critical role in an industrial process; 2) serves end markets and geographies that have attractive profiles; 3) market leading position; 4) history of stable revenue and attractive margins with significant parts and consumables revenue; and 5) large installed base of customers. The company’s current leverage ratio is approximately 1.9x and has the flexibility to move towards 3.0x.”
According to TipRanks.com, Howe is ranked #4033 out of 4827 analysts.
Kadant Inc has an analyst consensus of Moderate Buy, with a price target consensus of $112.
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Based on Kadant Inc’s latest earnings release for the quarter ending March 31, the company reported a quarterly net profit of $10.86 million. In comparison, last year the company had a net profit of $8.1 million.
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Kadant, Inc. engages in designing and manufacturing products used in industries ranging from paper to plastics and textiles to tires. It operates through the Papermaking Systems and Wood Processing Systems business segment.
