The average analyst price target for Zebra Technologies has increased by approximately $5 to $369.60. Analysts are highlighting improved margin assumptions, resilient performance despite tariff headwinds, and an upgraded outlook following recent sector and company updates.
Analyst Commentary
Recent Street research reflects a mix of optimism and caution regarding Zebra Technologies, with several analysts updating their outlooks and price targets in light of company and sector developments.
Bullish Takeaways- Bullish analysts highlight Zebra's ability to manage tariff headwinds more effectively than expected. This suggests operational resilience and prudent cost controls are supporting margins.
- Upgrades and raised price targets reflect improved outlooks following robust quarterly results and increased fiscal year guidance. This signals confidence in near-term execution and profitability.
- The recent acquisition of Elo Touch Solutions is seen as a complementary strategic fit, acquired at an attractive valuation. It is expected to enhance Zebra's product offering.
- Forecasts of modest beats and upward revisions are underpinned by improved backlog in engineering and construction segments. This points toward sustained growth opportunities.
- Bearish analysts caution that the lack of visibility in mobile compute refresh cycles and large deal announcements continues to limit upside potential, with uncertainty lingering around a rebound in customer spending.
- Some maintain more neutral ratings, citing "lackluster" organic growth assumptions and tempered expectations for a near-term acceleration in key business segments.
- Margin risks related to tariffs are expected to persist in the second half of the year. This could potentially pressure financial performance if cost headwinds extend beyond current forecasts.
- Certain regions, particularly European markets, are flagged for ongoing softness, which could weigh on aggregate performance despite positive results elsewhere.
What's in the News
- Zebra Technologies and Tulip announced a collaboration to help manufacturers integrate traceability, quality management, production tracking, and inventory control directly into their workflows using Zebra devices and Tulip's composable platform. (Client Announcements)
- New research with Oxford Economics highlights that modernizing frontline workflows with AI and automation can significantly boost profitability and customer satisfaction across retail, manufacturing, and logistics. (Strategic Alliances)
- Zebra will host its ZONE customer conference and the inaugural Frontline AI Summit. The focus will be on the transformative impact of AI-driven solutions in frontline productivity and workflow optimization. (Product-Related Announcements)
- A new partnership with the Indianapolis Colts brings Zebra's RFID tracking technology to the team's practice sessions. This technology offers real-time data to enhance player performance and health monitoring. (Client Announcements)
- Geneva10 Fulfillment selected Zebra Symmetry Fulfillment, an AI-powered solution, to automate and optimize their warehouse picking operations for over a 40% projected productivity increase. (Client Announcements)
Valuation Changes
- Consensus Analyst Price Target: Increased slightly from $364.67 to $369.60, reflecting improved confidence in near-term performance.
- Discount Rate: Edged up from 8.56% to 8.64%, suggesting a modest adjustment to perceived risk or market conditions.
- Revenue Growth: Projected growth rose moderately from 5.96% to 6.10%, pointing to slightly stronger sales expectations.
- Net Profit Margin: Improved gradually from 13.86% to 13.97%, indicating incremental gains in profitability.
- Future P/E: Shifted marginally higher from 26.18x to 26.27x. This maintains a relatively steady valuation multiple on earnings.
Disclaimer
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