Stifel Reiterates Buy Rating on Karat Packaging Inc (KRT)

Stifel analyst Brian J. Butler reiterated a Buy rating and $36.00 price target on Karat Packaging Inc (NASDAQ: KRT).

The analyst commented, "We maintain our Buy rating and $36 target price on Karat Packaging (KRT, Buy, $28.95). KRT delivered solid 4Q24 revenue of $101.6mm, up 6.3% Y/ Y on strong Distributor volumes. 4Q24 AEBITDA margins were 11.1%, up 210bp Y/Y, but below consensus of 12.5%. Guidance for FY25 was bullish with revenue growth of 9% to 11% (almost exclusively from volume) versus consensus growth of 7.4% with gross profit dollars midpoint outlook inline with consensus of $172mm but at slightly lower margins reflecting some cautiousness surrounding impact of tariffs. AEBITDA margin is expected in the low to mid double-digits, which translates into FY25 AEBITDA of ~$60mm (assuming 13% margin) and inline with consensus. FY25 CapEx is expected at $5mm, as KRT adds vehicles to support above average double- digit growth. KRT continues to take market share, helping customers reduce suppliers/ costs and streamline supply chains."

For an analyst ratings summary and ratings history on Karat Packaging Inc click here. For more ratings news on Karat Packaging Inc click here.

Shares of Karat Packaging Inc closed at $28.95 yesterday.

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