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The consensus price target hints at a 42% upside potential for Kornit Digital (KRNT). While empirical research shows that this sought-after metric is hardly eff
Shares of Kornit Digital (KRNT) have gained 7.1% over the past four weeks to close the last trading session at $16.48, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $23.4 indicates a potential upside of 42%.
The average comprises five short-term price targets ranging from a low of $18.00 to a high of $29.00, with a standard deviation of $5.5. While the lowest estimate indicates an increase of 9.2% from the current price level, the most optimistic estimate points to a 76% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.
While the consensus price target is highly sought after by investors, the ability and unbiasedness of analysts in setting price targets have long been questionable. And investors making investment decisions solely based on this tool would arguably do themselves a disservice.
