Analyst Joseph C Giordano of TD Cowen maintained a Buy rating on Zebra Tech (ZBRA – Research Report), retaining the price target of $425.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Joseph C Giordano’s rating is based on the observation that the market’s reaction to Zebra Technologies’ earnings appears exaggerated, considering the company’s strong fourth-quarter results and positive first-quarter guidance. The fiscal year outlook incorporates minimal expectations beyond what is currently visible, but the year is anticipated to commence positively, with no immediate conditions that could reverse this trend. The company’s management has been prudent in committing only to what they foresee, and the underlying conditions in key markets seem to be improving.
Additionally, the updated model takes into account the impact of tariffs from China, Canada, and Mexico, alongside foreign exchange headwinds, which were not factored in previously. Despite these headwinds, the growth and operational expense assumptions have been slightly adjusted, remaining above the guidance. The company’s expectation of a normalized 6% growth could lead to significant revenue increases by 2026, particularly as the market moves past the post-Covid deployment phase toward a potential refresh cycle. This refresh cycle, anticipated by some competitors, could further enhance growth prospects, although Zebra has yet to incorporate this potential in their current guidance.
In another report released today, UBS also maintained a Buy rating on the stock with a $425.00 price target.