Zebra Technologies (ZBRA) Gains as Needham & Company Has Growing Confidence In 2nd-Half Earnings Momentum

Zebra Technologies (NASDAQ: ZBRA) is solidly higher Monday (4%) following positive comments from Needham & Company analyst James Ricchiuti weighed in on the stock after hosing a series of investor meetings recently. The firm has growing confidence in 2nd-half earnings momentum and reiterated a Buy rating and price target of $107.

Ricchiuti commented, "We hosted ZBRA mgmt at a series of investor meetings recently. We came away incrementally more positive about the potential for upside to our numbers for this year and next. Industry data suggest that ZBRA is growing faster than the market, reflecting strength in key verticals like retail and transportation & logistics. While ZBRA’s rev comparisons will get tougher in the 2H, its earnings momentum appears sustainable. With the Enterprise Solutions integration largely behind it, we expect ZBRA to drive increased operating efficiencies and margin improvement over the balance of the year while potentially delivering upside revenues from a strong new product cycle, particularly in mobile computing. We believe ZBRA shares can continue to work higher based on current fundamentals."

The firm is increasing 2017 EPS estimate to $6.40 from $6.33 on revenues of $3.6B. They are maintaining 2018 EPS estimate at $7.15 on revenues of $3.7B.

For an analyst ratings summary and ratings history on Zebra Technologies click here. For more ratings news on Zebra Technologies click here.

Shares of Zebra Technologies closed at $98.48 yesterday.

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