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Investing.com - KeyBanc Capital Markets maintained its Sector Weight rating on Zebra Technologies (NASDAQ:ZBRA) following the company’s third-quarter results, despite a recent stock sell-off that the firm’s analyst Ken Newman described as "overdone." The stock has plummeted 13.7% over the past week, with InvestingPro data showing ZBRA trading significantly below its 52-week high of $427.75.
Zebra Technologies reported better-than-expected third-quarter results, exceeding forecasts with stronger revenue and margins. The company also raised its fiscal year 2025 guidance, implying fourth-quarter results above consensus estimates. This positive performance aligns with Zebra’s impressive 19.1% revenue growth over the last twelve months.
Despite these positive developments, ZBRA shares fell after the earnings announcement. KeyBanc attributed this negative stock performance to investor concerns about potential pull-forward demand and expectations for approximately flat organic volumes in the fourth quarter. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value calculation, suggesting the recent sell-off may present an opportunity for investors seeking quality stocks at discounted prices.
While acknowledging concerns about tepid organic growth, KeyBanc indicated it does not believe volumes will be flat or negative in fiscal year 2026. The research firm noted that Zebra’s fundamentals remain intact despite recent market reactions. This view is supported by Zebra’s perfect Piotroski Score of 9, indicating exceptional financial strength.
KeyBanc maintained its cautious stance, however, stating it would "wait for further signs of a large customer refresh cycle before becoming more positive" on the stock’s outlook. With a beta of 1.75, ZBRA exhibits higher volatility than the broader market, potentially offering both risks and opportunities for investors.
In other recent news, Zebra Technologies reported its third-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $3.88, compared to the forecasted $3.73. The company’s revenue also exceeded predictions, reaching $1.32 billion against a projection of $1.31 billion. Despite these positive results, Zebra Technologies faced a stock decline, attributed to broader market trends and specific company challenges. TD Cowen reiterated its Buy rating for Zebra Technologies, maintaining a price target of $400.00. The firm observed mixed organic growth, with the Asset Intelligence & Tracking (AIT) segment outperforming expectations, driven by retail and e-commerce strength. However, the Enterprise Visibility & Mobility (EVM) segment did not perform as well. Regionally, North America saw a growth of 6%, Asia Pacific 23%, and Latin America 8%, while EMEA did not experience healthy organic growth. These developments indicate a varied performance across different segments and regions for Zebra Technologies.
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