2Q:F26 results came in ahead of expectations, and management increased its F2026 outlook. As a result, we adjust our F2026 projections to reflect this new guidance but maintain our F2027 estimates. We view the results as slightly better than expected and do not think yesterday's more than 20% sell-off was warranted (compared to the Russell 2000 Index's drop of just short of 2%). Year over year growth in Medical was offset by declines in the Automotive and Industrial segments. The company expects Medical to continue to show strength, while Automotive and Industrial are expected to remain challenging near term. The company has made a strategic move to sharpen its focus on the Medical sector and is looking to drive growth by ramping up partnership efforts and opportunistic M&A. To support this effort, KE is adding a new manufacturing facility in Indianapolis focused on the medical industry, supporting more complex medical device manufacturing such as drug delivery devices, insulin pumps, and surgical devices. We like the company's global footprint, with facilities in North America, Europe and Asia that support in-region manufacturing. We believe KE stands to benefit from the outsourcing trend and is well positioned to return to revenue growth in F2027 with improved margins. KE ended 2Q:F26 with $78 million in cash, and we expect the company to remain cash flow positive. Capex was a bit elevated due to investments in the new Indianapolis facility. We apply about 16x to our F2027 free cash flow projection per share of $1.80 to derive our $30 price target. We assign a moderate risk rating, supported by the company's sustained profitability, improving balance sheet and track record of generating free cash flow. Over the past 12 months, KE shares are up 55% compared to the 9% increase in the Russell 2000 Index.