KeyBanc Starts Kimball Electronics (KE) at Sector Weight

KeyBanc analyst Brett Fishbin initiates coverage on Kimball Electronics (NASDAQ: KE) with a Sector Weight rating.

The analyst comments: “We believe KE’s strategic pivot toward MedTech end markets could support an improved financial outlook and valuation multiple over time; however, initiate SW based on current visibility/portfolio mix. More specifically: 1) KE is a diversified CDMO with a large legacy presence in Autos/Industrials; 2) we expect Medical to remain accretive to growth, and may incrementally benefit from a PHG return to U.S. market, but view NT Autos visibility as limited NT; 3) a material uptick in margins likely depends on the pace of mix shift; and 4) we think valuation reasonably reflects its financial profile.”

For an analyst ratings summary and ratings history on Kimball Electronics click here. For more ratings news on Kimball Electronics click here.

Shares of Kimball Electronics closed at $25.71 yesterday.

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