Karat Packaging

KRT · NASDAQ

$53.95+$0.80 (+1.51%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $53.15

KRT analyst rating

HoldConsensus of 3 analysts over the last 12 months. 67% rate it a buy.

Strong buy0
Buy2
Hold0
Underperform1
Sell0

12-month price target · 3 analysts

Average $47.43 (−12.1% downside)

Low: $33.33
Now: $53.95
High: $63.00

Upgrades and downgrades

The latest rating actions, newest first

KRT analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Lake Street	Aug 7, 2026	Maintains	Buy	$39.00 → $50.00	37%
B of A Securities	Jul 14, 2026	Maintains	Underperform	$23.00 → $34.00	52%
William Blair	Jun 4, 2026	Upgrade	Market Perform → Outperform	—	63%
Lake Street	May 8, 2026	Maintains	Buy	$35.00 → $39.00	37%
B of A Securities	Nov 17, 2025	Downgrade	Buy → Underperform	$27.00 → $22.00	52%

The case for and against

Updated Sep 11, 2024

Bull case

Karat Packaging Inc. has shown notable gross margin expansion in the third quarter of 2023, with an increase of 580 basis points year-over-year to 36.9%, and management has adjusted their guidance for the full year 2023 upwards, anticipating a gross margin of 37.5-38.5%. The company is experiencing strong revenue and EBITDA growth, driven by reduced ocean freight costs and expected volume increases from expanded warehouse capacity and an enlarged sales team, contributing to a positive long-term growth outlook. Additionally, Karat Packaging's strategic focus on diversifying supply channels and introducing new product lines positions it well in an industry projected to grow organically at an annual rate of 6%-7%.

Bear case

Karat Packaging Inc. has revised its 2023 revenue guidance downward, citing a 4.1% year-over-year decline in revenue during the third quarter primarily driven by significant pricing pressure and reduced logistics revenue. The company's outlook for 2024 has also been negatively impacted, with lowered EBITDA estimates reflecting concerns over off-premise meal occasions declining post-COVID and continuing challenges in maintaining pricing power. Although there has been some growth in sales volume and a broadening customer base, the overall financial performance appears constrained, casting doubt on future revenue stability and growth potential.

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