In a report released today, Tristan Gerra from Robert W. Baird maintained a Buy rating on Knowles (KN – Research Report), with a price target of $25.00.
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Tristan Gerra has given his Buy rating due to a combination of factors that indicate strong growth potential for Knowles. The company is poised for a return to year-over-year revenue and earnings per share growth in the second half of the year, supported by an increase in bookings and the stabilization of the industrial market. Notably, the medical and defense sectors have shown accelerated bookings, and channel inventories are expected to normalize, indicating a positive outlook for the company’s financial performance.
Additionally, Knowles maintains a robust balance sheet with net leverage at 0.6x, which underscores its financial stability. The company projects to generate operating cash flow exceeding 15% of revenue in 2025, and continues to focus on mergers and acquisitions as a strategic growth avenue. Furthermore, the board’s decision to enhance the share repurchase program by $150 million to a total of $194 million reflects confidence in the company’s future prospects. These elements collectively contribute to Gerra’s positive outlook and Buy rating for Knowles.
According to TipRanks, Gerra is a 4-star analyst with an average return of 7.5% and a 49.40% success rate. Gerra covers the Technology sector, focusing on stocks such as Himax Technologies, Intel, and ON Semiconductor.