Symbotic downgraded to Neutral at DA Davidson after more accounting errors found

As previously reported, DA Davidson analyst Matt Summerville downgraded Symbotic (SYM) to Neutral from Buy with a price target of $35, down from $50, after the company delayed its 10K filing for its FY24 as it needs added time to complete the assessment of the financial impacts of correcting errors that were already disclosed and the associated impact on internal control and financial reporting. On November 25, Symbotic identified other errors in revenue recognition related to cost overruns that will not be billable on certain deployments that will impact FY24 results, while fiscal Q1 revenue and adjusted EBITDA were also lowered by $15M each at the midpoint, notes the analyst. While the firm said there is no change to its long-term, secular-driven thesis, nor its views of the company’s “best-in-class technology,” it downgrades shares until the accounting errors are “sorted out.”