Kimball Electronics: Lake Street Raises PT to $28, Maintains Buy Rating

Kimball Electronics: Lake Street Raises PT to $28, Maintains Buy Rating

Kimball Electronics, Inc. (NasdaqGS: KE) has seen its price target raised to $28 by Lake Street Capital, with the investment firm maintaining its buy rating on the stock. This update comes amidst the company's recent strong financial performance, particularly in its Q4 2024 fiscal year, where it beat earnings estimates by a significant margin.

Financial Highlights

In Q4 2024, Kimball Electronics reported a revenue of $380.5 million, which exceeded FactSet's four-analyst estimate of $333.2 million. This represents a 14.2% beat over the estimates. Additionally, the company's adjusted EPS was $0.34, surpassing the FactSet estimate of $0.19, marking an 83.8% beat [1].

Operational and Strategic Moves

The company's strong performance is bolstered by strategic moves, including the addition of a new facility to support its growth in the medical contract manufacturing segment. This facility is expected to enhance the company's operational efficiency and expand its capacity to meet growing demand [1].

Analyst Perspectives

Lake Street Capital's decision to raise the price target reflects a bullish outlook on the company's prospects. The firm's analyst, Richard D. Phillips, stated that the results for the fourth quarter and the fiscal year as a whole were encouraging. The company's sequential sales increase, improved margins, and positive cash flow have positioned Kimball Electronics with a strong balance sheet and ample liquidity [1].

Long-term Growth

While the recent quarterly results are positive, Kimball Electronics has faced challenges in long-term revenue growth. Over the last five years, the company has experienced a compounded annual growth rate of 4.4%, which is below the industry average. However, the company has shown resilience and is expected to maintain its position in the competitive market [2].

Conclusion

Kimball Electronics' latest earnings report and the subsequent upgrade in its price target by Lake Street Capital indicate a positive trajectory for the company. Despite facing cyclical downturns in the Electrical Systems industry, Kimball Electronics has demonstrated the ability to adapt and perform well. Investors should closely monitor the company's future earnings and strategic initiatives to gauge its long-term potential.

References

[1] https://www.marketscreener.com/news/kimball-electronics-q4-sales-beat-estimates-ce7c51d8d88fff24
[2] https://markets.financialcontent.com/stocks/article/stockstory-2025-8-13-kimball-electronics-nasdaqke-reports-bullish-q2-stock-jumps-133