DA Davidson reiterates Neutral rating on Kadant stock amid sector caution

DA Davidson has reaffirmed its Neutral rating and $295.00 price target for Kadant Inc. (NYSE:KAI), citing cautious sentiment in the pulp, paper, and packaging equipment sector following a peer’s results. The firm highlighted risks like weaker demand for parts and consumables, Kadant’s elevated valuation multiples (P/E of 39.78, EV/EBITDA of 19.89), and an anticipated subdued organic growth outlook for 2026, despite a “GOOD” financial health score. Kadant recently announced the acquisition of voestalpine Böhler Profil GmbH & Co KG, set to close in Q1 2026, and approved a quarterly cash dividend of $0.34 per share.

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