UPDATE: Oppenheimer Starts Zebra Technologies (ZBRA) at Outperform

Oppenheimer initiated coverage on Zebra Technologies (NASDAQ: ZBRA) with an Outperform rating and a price target of $140.00. Analyst Holden Lewis sees value, with core markets stable and retail seen as a bright spot

"Zebra is the leader in the market for commercial hardware involved in data capture. Two things differentiate it. One, the "Enterprise" acquisition is strategic, complementary, and a trove of incremental earnings over the next few years. Two, its exposure to retail is advantageous in that the sector shows signs of higher spending and omni-channel adoption. These factors should provide a competitive lift, several years of above-trend growth, and potential for a higher multiple."

"Zebra has two things going for it. First, its offering is more dynamic with the purchase of Enterprise. There is significant strategic potential in pairing the firms’ lines, and the model should benefit over our forecast horizon by the realization of synergies and debt reduction. Second, it stands to gain by growth of the IIoT, though this is likely more an intermediatethan near-term catalyst. The exception may be retail, where omni-channel seems to be gaining steam and where Zebra has material exposure; retail may be a big catalyst. The stock is not cheap, but we believe these elements provide opportunities to exceed expectations," added the analyst.

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 $109.40 yesterday.

You May Also Be Interested In

• Craig-Hallum Starts Astera Labs (ALAB) at Buy, 'Connectivity For The AI/Cloud Generation'
• William Blair Starts Cullinan Oncology Inc. (CGEM) at Outperform, 'Diversified Oncology Portfolio With Upside in Autoimmune'
• Midday movers: Goldman Sachs and Meta Platforms rise; Apple and Tesla fall