Liang Zhao, CFA
Medium-term horizon, research analyst, Growth

High-Conviction Long In Kornit Digital: A Global Leader In Textile Digital Printing

I recommend a long position in Kornit Digital (NASDAQ:KRNT). My 12-month price target is $25.9, representing 32% upside from current price $19.56. KRNT has great textile digital printing technology, very strong and defensible IP, great management team, and great execution as demonstrated since its IPO. I believe KRNT is a great investment in the secular growth of textile digital printing and the explosive growth of online garments/fast fashion/instant fashion.

Investment Thesis

Expect revenues to grow at a CAGR of 30% during 2016-2021E. Key drivers include KRNT's differentiated technology and the market move to online garments/fast fashion/instant fashion.

Expand Total Addressable Market from $500 Million in DTG to $1.7 Billion in DTG Plus a Meaningful Penetration in R2R


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