B of A Securities Initiates Coverage on Karat Packaging (KRT) with Neutral Rating, Sets Price Target of USD 28.00

B of A Securities initiated coverage on Karat Packaging (KRT) with a "Neutral" rating and a price target of $28.00. Analyst George Staphos led this assessment, marking the first coverage by B of A Securities on KRT. Investors in Karat Packaging should consider these insights as part of their broader investment strategy.

BofA Securities has initiated coverage on Karat Packaging Inc. (NASDAQ: KRT) with a Neutral rating and a price target of $28.00. This marks the first time BofA Securities has evaluated the company. The analyst leading this assessment is George Staphos.

Karat Packaging, a foodservice packaging supplier, has transitioned its business model, shifting focus from manufacturing to distribution. Currently, manufacturing sales represent approximately 11% of the business, down significantly from 26% in 2022. Despite this shift, the company maintains strong financial metrics, with a notable 6.84% dividend yield and liquid assets exceeding short-term obligations.

BofA Securities appreciates Karat Packaging's business approach but considers the stock fairly valued at current levels. The company supplies packaging, utensils, and other products to the foodservice industry. Despite potential consumer macroeconomic risks, BofA expects Karat Packaging’s volumes to grow at high single-digit percentages, aligning with the company’s current revenue growth of 8%. Factors affecting the company’s sales include consumer confidence, restaurant sales, food delivery, and e-commerce.

In other recent news, Karat Packaging Inc. reported its second-quarter earnings for 2025, exceeding both earnings per share (EPS) and revenue forecasts. The company achieved an EPS of $0.57, slightly above the anticipated $0.56. Additionally, revenue reached $124 million, surpassing the $123.97 million estimate. These results reflect positively on the company’s financial performance. Despite the favorable earnings and revenue figures, the stock experienced a decline in after-hours trading, though specific reasons for this were not detailed. Investors may be considering the broader market context and future guidance.

References:
[1] https://www.investing.com/news/analyst-ratings/karat-packaging-stock-initiated-at-neutral-by-bofa-with-28-target-93CH-4187846
[2] https://www.ainvest.com/news/bearish-note-akamai-technologies-goldman-sachs-initiates-sell-rating-67-pt-2508/
[3] https://www.marketbeat.com/all-access/analyst-rankings/1802/