Zebra Technologies (ZBRA) PT Lowered to $425 at UBS

UBS analyst Damian Karas lowered the price target on Zebra Technologies (NASDAQ: ZBRA) to $425.00 (from $445.00) while maintaining a Buy rating.

The analyst commented, "We are lowering our estimates and PT to $425, but we reiterate our Buy on ZBRA post 4Q24 results. As we had expected heading into the print, mgmt guidance on 2025 EPS was ~7% below Consensus mean. So despite strong orders conversion in 4Q driving sales momentum in early 2025, shares have sold off ~10% as ZBRA struck a more cautious tone on the current year outlook due to a lack of visibility beyond 1Q. Even with a prudent approach to guidance that derisks direct impacts from China 10%/MX 25% tariffs, the company still expects MSD y/y sales growth after 1Q and 2025 earnings up LDD+ y/y. We continue to sense that the project funnel remains robust and customers are intending to spend more this year, but for now tariffs are preoccupying their time/attention. Consequently, we see the potential for much better visibility in the coming months should murky trade policy clear up, and as a result wider spanning project activity/ funnel conversion in 2H. Bottom line - ZBRA is in the early innings of its growth cycle, we think they are gaining share and are better positioned vs. their primary competitor (HON PS&S), and their B/S is the strongest it's been in 3 years. Reiterate Buy."

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