TD says Kneat is still a buy

TD Cowen analyst David Kwan is maintaining his “Buy” rating and $6.00 price target on Kneat.com (Kneat Stock Quote, Chart, News, Analysts, Financials TSX:KSI) above the $5.75 Street average, ahead of the company’s fourth-quarter results due after market close on February 25.

As reported by the Globe and Mail, Kwan said his revenue and Adjusted EBITDA estimates are in line with consensus, but he expects a modest slowdown in organic growth.

“We expect a slight deceleration in organic growth to 25% year-over-year (vs. 26% in Q3), which is relatively strong, but organic growth continues to be negatively impacted by tariff uncertainty driving longer sales cycles and budget pressures,” he said.

Kwan added that he will be looking for further commentary on demand trends and any updates to management’s timeline to reach Adjusted EBITDA (cash R&D) and free cash flow break-even or positive in fiscal 2026.

Kneat develops the Kneat Gx SaaS platform, which provides digital, paperless validation and quality management software compliant with FDA 21 CFR Part 11 requirements for the life sciences, pharmaceutical and medical device industries.

-30-