UPDATE: Barrington Raises PT on Kadant on Second Quarter Earnings

In a report published on Wednesday, Barrington Investment Research analyst James Goss raised the target price from $37.00 to $40.00 on Kadant (NYSE: KAI) and maintained an Outperform rating on the company.

In the report, Barrington noted, "The company reported second quarter earnings above expectations primarily due to record gross margins." Additionally, the company's growth initiatives include "developing products with attractive returns on investments, focusing on the developing world, increasing the spares and consumables business, increasing market penetration of low-share areas, lowering the cost of manufacturing and pursuing acquisitions that complement their business."

Kadant traded up 1.67 percent on Wednesday, to $32.79.