UPDATE: Citi Starts Symbotic Inc. (SYM) at Buy
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Citi analyst Andrew Kaplowitz initiates coverage on Symbotic Inc. (NASDAQ: SYM) with a Buy rating and a price target of $15.00.
The analyst comments "Given favorable trends across the warehouse automation end market and SYM’s positioning as an end-to-end warehouse automation player, we view the company as well positioned to generate hyper-growth over the next several years. That said, we do think customer concentration and the discretionary nature of automation spend creates modest risks but Walmart’s commitment to deploy SYM systems in its 42 regional centers and SYM’s existing backlog of $11.4bn should, in our view support near-term resiliency (in a potential economic slowdown) as well as provide strong multi-year visibility to sales growth. In addition, as the company continues to scale/burn backlog, we do expect margins to gradually improve, further supporting earnings momentum. Based on these factors, we initiate coverage with a Buy/High Risk rating and a $15 price target based on a 32x EV/EBITDA multiple on our FY24 estimates."
Shares of Symbotic Inc. closed at $10.97 yesterday.
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