Kimball Electronics

KE · NASDAQ

$26.16−$0.06 (−0.23%)TodayMarket closed · Oct 20, 7:30 PM ET

Prev close $26.22

KE analyst rating

BuyConsensus of 2 analysts over the last 12 months. 50% rate it a buy.

Strong buy0
Buy1
Hold1
Underperform0
Sell0

12-month price target · 7 analysts

Average $34.94 (+33.5% upside)

Low: $30.30
Now: $26.16
High: $38.85

Upgrades and downgrades

The latest rating actions, newest first

KE analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Hit rate
Keybanc	Jul 2, 2026	Initiates	Sector Weight	56%

The case for and against

Updated Oct 14, 2026

Bull case

Kimball Electronics is viewed positively because its strategic shift toward MedTech offers a clearer path to higher-margin growth, while Medical has already shown strength with +7% YTD in FY26 and is expected to sustain 7-8% growth in FY27/FY28. Although Autos and Industrials have declined for three consecutive years due to macro weakness and program losses, the company’s broad global footprint and increasing contractual customer relationships support resilience, and the recent $103M Helvoet acquisition adds accretive revenue and capability. With gross margins in the HSD range, operating margins around 4-5%, and valuation at 21.0x P/E and 7.9x EV/EBITDA, the upside case rests on mix shift toward higher-ASP, higher-margin Medical programs and potential contribution from PHG returning to the U.S. market.

Bear case

Kimball Electronics is facing a fundamentally challenged earnings profile because its automotive growth is being pressured by the winding down of legacy programs, softer EV demand, OEM inventory normalization, and the risk that new steering and braking wins may not fully offset lost revenue such as the Reynosa braking program exit and other market declines. Its margin structure also limits near-term upside, with gross margins in the high-single-digit-to-low-teens range and operating margins around 4-5%, while a shift toward higher-margin Medical work will take time and is expected to absorb a 40-50 bps gross margin headwind in FY27 from the new Indy Medical facility. At the same time, results have been lumpy due to large project timing, and weakness in Medical, Industrial, and customer-specific issues like the PHG recall and AT&M divestiture underscore a broader reliance on uneven, end-market-dependent recovery.

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