Not a good buy right now for an impatient buyer: momentum is stretched (RSI overbought) and pattern-based odds skew negative over the next week/month.
Price is near/above key resistance levels, increasing the risk of a pullback rather than an immediate upside breakout.
Fundamental trend is mixed (revenue up, but profits/EPS and margins down), which weakens conviction to chase strength here.
With no proprietary buy signals (AI Stock Picker/SwingMax) and a bearish analyst shift, the setup does not justify buying at the current pre-market price (~26.02).
Technical Analysis
Trend/Momentum: MACD histogram is positive (0.0771) and expanding → bullish momentum is present, but it is extended.
RSI: RSI_6 at 80.645 (overbought) → favors near-term mean reversion/pullback risk over fresh entries.
Moving averages: Converging MAs → trend is not clean/strong; more susceptible to chop and reversals.
Net Income: $7.325M, -19.45% YoY (profit down despite revenue growth).
EPS: $0.36, -20.00% YoY.
Gross Margin: 34.47%, -10.63% YoY (margin compression is the key negative trend).
Takeaway: growth is coming with weaker profitability, reducing the attractiveness of buying after a run-up.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
[2025-11-17] BofA downgraded Karat Packaging to Underperform (from Buy); price target cut to $22 (from $27).
Wall Street pros/cons view based on provided data:
Pros: revenue growth; included in screens for high-yield names (potential defensive interest).
Cons: the only cited analyst move is negative and the target implies meaningful downside from ~26; profitability and margins are trending down, reinforcing the cautious stance.
Wall Street analysts forecast KRT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KRT is 28.5 USD with a low forecast of 22 USD and a high forecast of 35 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
Wall Street analysts forecast KRT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KRT is 28.5 USD with a low forecast of 22 USD and a high forecast of 35 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Buy
1 Hold
1 Sell
Hold
Current: 25.610
Low
22
Averages
28.5
High
35
Current: 25.610
Low
22
Averages
28.5
High
35
BofA
Buy -> Underperform
downgrade
$27 -> $22
AI Analysis
2025-11-17
Reason
BofA
Price Target
$27 -> $22
AI Analysis
2025-11-17
downgrade
Buy -> Underperform
Reason
BofA downgraded Karat Packaging to Underperform from Buy with a price target of $22, down from $27.
BofA
Neutral
initiated
$28
2025-08-13
Reason
BofA
Price Target
$28
2025-08-13
initiated
Neutral
Reason
BofA initiated coverage of Karat Packaging with a Neutral rating and $28 price target.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for KRT
