Bank of America Increases Karat Packaging (NASDAQ:KRT) Price Target to $34.00

Key Points

• Bank of America raised its price target on Karat Packaging to $34 from $23, while keeping an underperform rating on the stock. The new target still implies a slight downside from the previous close.
• Analyst sentiment on KRT is mixed overall, with the consensus rating listed as Hold and an average price target of $36.50. Recent ratings include buy, hold, and sell calls from various firms.
• Karat Packaging shares were trading up about 1.8% to $35.34, near its 52-week high. The company also reported better-than-expected quarterly results, including EPS of $0.34 versus an expected $0.32 and revenue above estimates.

Karat Packaging (NASDAQ:KRT - Get Free Report) had its price target raised by analysts at Bank of America from $23.00 to $34.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The firm presently has an "underperform" rating on the stock. Bank of America's price target points to a potential downside of 3.81% from the stock's previous close.

KRT has been the topic of several other research reports. Lake Street Capital reaffirmed a "buy" rating and set a $39.00 target price on shares of Karat Packaging in a research report on Friday, May 8th. Zacks Research lowered Karat Packaging from a "strong-buy" rating to a "hold" rating in a report on Tuesday, May 12th. William Blair raised Karat Packaging from a "market perform" rating to an "outperform" rating in a research report on Thursday, June 4th. The Goldman Sachs Group cut Karat Packaging to a "neutral" rating in a research note on Thursday, June 4th. Finally, Weiss Ratings reissued a "hold (c+)" rating on shares of Karat Packaging in a report on Thursday, June 11th. Two analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Karat Packaging presently has a consensus rating of "Hold" and an average target price of $36.50.

Karat Packaging Trading Up 1.8%

KRT stock traded up $0.61 during mid-day trading on Tuesday, reaching $35.34. 35,065 shares of the stock traded hands, compared to its average volume of 91,442. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.15 and a current ratio of 2.29. Karat Packaging has a one year low of $20.61 and a one year high of $35.67. The stock has a market capitalization of $705.49 million, a PE ratio of 22.37, a PEG ratio of 1.70 and a beta of 0.85. The business has a 50-day moving average price of $29.68 and a two-hundred day moving average price of $27.22.

Karat Packaging (NASDAQ:KRT - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported $0.34 EPS for the quarter, topping analysts' consensus estimates of $0.32 by $0.02. Karat Packaging had a net margin of 6.61% and a return on equity of 19.87%. The firm had revenue of $116.95 million for the quarter, compared to analysts' expectations of $112.98 million. Equities research analysts expect that Karat Packaging will post 1.78 EPS for the current year.

Institutional Investors Weigh In On Karat Packaging

A number of institutional investors and hedge funds have recently modified their holdings of the company. Goldman Sachs Group Inc. lifted its stake in Karat Packaging by 19.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 28,565 shares of the company's stock valued at $759,000 after acquiring an additional 4,684 shares during the period. Jane Street Group LLC acquired a new position in Karat Packaging during the first quarter valued at $219,000. JPMorgan Chase & Co. raised its stake in shares of Karat Packaging by 921.6% during the 2nd quarter. JPMorgan Chase & Co. now owns 34,203 shares of the company's stock valued at $963,000 after buying an additional 30,855 shares during the last quarter. Hsbc Holdings PLC lifted its holdings in shares of Karat Packaging by 41.1% in the 2nd quarter. Hsbc Holdings PLC now owns 13,731 shares of the company's stock valued at $379,000 after buying an additional 3,999 shares during the period. Finally, First Trust Advisors LP lifted its holdings in shares of Karat Packaging by 3.9% in the 2nd quarter. First Trust Advisors LP now owns 22,061 shares of the company's stock valued at $621,000 after buying an additional 830 shares during the period. Institutional investors and hedge funds own 25.20% of the company's stock.

Karat Packaging Company Profile

Karat Packaging Technologies, Inc NASDAQ: KRT is a U.S.-based provider of premium packaging solutions for consumer goods and industrial products. The company specializes in the design, manufacture and delivery of high-quality litho-laminated folding cartons, tubes and flexible packaging. Karat Packaging operates an integrated production model that combines prepress, printing, converting and finishing capabilities to support the branding and shelf-appeal needs of its customers.

The company serves a diverse range of end markets, including food and beverage, confectionery, health and beauty, pharmaceuticals, specialty chemicals and promotional packaging.

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