Raymond James downgrades Symbotic on execution concerns

Investing.com -- Raymond James downgraded Symbotic Inc (NASDAQ: SYM) to "Market Perform" from "Outperform" on disappointing first-quarter results, weak second-quarter guidance, and concerns over the company's ability to scale system deployments efficiently.

The brokerage highlighted flat backlog at $22.4 billion and a slowdown in system deployments, which came in at 44 versus its estimate of 49. It also flagged a lack of progress in reducing time-to-deployment, a key element of its bullish thesis.

“SYM’s success in reducing time-to-deployment was a core tenant of our thesis, and the current pace of 24 months shows little improvement from the rate achieved two years ago,” analyst said.

While Symbotic's technology and market potential remain attractive, Raymond (NSE:RYMD) James said inconsistent execution raises doubts about its ability to scale profitably. It expects fiscal 2025 to be a year of "restoration," as the company works through operational challenges, integrates a $550 million acquisition, and builds confidence in its execution.

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