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Investing.com - UBS downgraded Symbotic Inc. (NASDAQ:SYM) from Neutral to Sell on Tuesday, while raising its price target to $35.00 from $27.00. According to InvestingPro data, the stock currently trades at $60.73, with a notable market capitalization of $35.9 billion and maintains a "GOOD" overall financial health score.
The downgrade comes despite Symbotic’s substantial stock performance, which has risen approximately 170% since April 1st, with InvestingPro showing a remarkable 171.2% return over the past six months. UBS cited concerns about the company’s high equity valuation at 10 times estimated 2027 sales without sufficient evidence of growth acceleration or new business wins outside its primary customer, Walmart. The company’s current Price/Book ratio of 170.15 reflects this premium valuation.
UBS noted that Symbotic’s fiscal third-quarter results failed to demonstrate meaningful progress on customer expansion beyond Walmart and suggested sales headwinds over the next three quarters. While InvestingPro data shows strong revenue growth of 35.7% over the last twelve months, the investment firm believes shares are currently pricing in approximately 50% sales compound annual growth rate through 2028, compared to UBS’s estimate of 28%. Unlock 15+ additional ProTips and comprehensive analysis with an InvestingPro subscription.
While acknowledging Symbotic’s new storage technology, UBS indicated it may support better profitability but doesn’t present a meaningful upside driver to near-term sales. The firm also highlighted that Symbotic ranks relatively low in its UBS Evidence Lab survey of the warehouse automation systems market.
UBS additionally identified Amazon’s heightened focus on online grocery, including its expansion of same-day delivery to 3,500 locations and lowering the free shipping requirement to $25, as a potential long-term risk to Symbotic.
In other recent news, Symbotic Inc. reported its third-quarter 2025 earnings, revealing a 26% year-over-year revenue increase to $592 million. Despite this growth, the company experienced an unexpected loss per share of $0.05, which fell short of the forecasted earnings per share (EPS) of $0.05. This earnings miss has been a significant development for the company. The financial results have sparked reactions in the market, as indicated by the premarket stock movement. Investors and analysts are closely monitoring these developments. The company’s financial performance has drawn attention, especially given the discrepancy between expected and actual earnings. These recent updates are crucial for stakeholders evaluating the company’s future prospects.
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