On Wednesday, Oppenheimer began covering Symbotic Inc. (NASDAQ:SYM) stock by assigning it an Outperform rating and setting a price target of $35.00. The research firm’s analysts see Symbotic as a disruptive force in the warehouse and distribution center market, due to its advanced AI-driven automation technology. With a market capitalization of $15.8 billion and impressive revenue growth of 52% in the last twelve months, Symbotic has caught analysts’ attention. InvestingPro analysis suggests the stock is slightly undervalued at current levels, with analyst targets ranging from $10 to $60.
According to Oppenheimer, Symbotic’s innovative solutions are poised to transform the fulfillment supply chain by offering lower-cost, higher-accuracy warehouse automation. The firm’s analysts believe this technological advancement positions the company to potentially introduce Warehouse-as-a-Service offerings through its GreenBox joint venture with SoftBank (TYO:9984). InvestingPro data reveals multiple growth indicators, including expected sales growth and net income improvement this year. Subscribers can access 8 additional ProTips and comprehensive financial analysis through the Pro Research Report.
The price target of $35.00 set by Oppenheimer is based on a multiple of 7.0 times the forecasted fiscal year 2027 sales, which has been discounted back one year at a 10% rate. This valuation reflects the analysts’ confidence in the company’s growth trajectory and the expected positive impact of its technology on the market. The stock has shown significant volatility, with a beta of 1.77 and a 37% decline over the past six months, though it maintains strong fundamentals with more cash than debt on its balance sheet.
Symbotic’s approach to warehouse automation integrates artificial intelligence to streamline operations, which could lead to significant cost savings and efficiency gains for clients. The potential for Warehouse-as-a-Service offerings further suggests a scalable business model that could appeal to a broad range of customers in the logistics and distribution sectors.
The initiation of coverage by Oppenheimer with a favorable Outperform rating indicates a positive outlook for Symbotic’s stock performance. The $35.00 price target suggests that the analysts expect the stock to grow significantly from its current levels, reflecting their optimism about the company’s future prospects.
In other recent news, Symbotic Inc. has seen significant developments. The company reported impressive revenue growth of 52% over the last year, reaching $1.79 billion. It also experienced a 55% year-over-year increase in Q4 revenue, totaling $577 million, and expects a 40% year-over-year increase for Q1 2025. This growth is bolstered by the acquisition of Veo Robotics and a partnership with Walmart (NYSE:WMT) Mexico, which is projected to add approximately $400 million to Symbotic’s backlog.
However, Symbotic has faced challenges due to accounting errors, leading to changes in analyst ratings. Citi resumed coverage on the company with a Buy rating and a price target of $37.00, expressing confidence in Symbotic’s potential for earnings growth. DA Davidson upgraded Symbotic’s rating from Neutral to Buy following a review of the company’s financial restatements. However, after the discovery of additional accounting errors, DA Davidson and KeyBanc Capital Markets both downgraded their ratings.
TD Cowen maintained its Buy rating on Symbotic, but adjusted its price target down to $45 from $50. Despite the accounting issues, all three firms - Citi, DA Davidson, and TD Cowen - anticipate a positive future for Symbotic.
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