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Investing.com -- DA Davidson downgraded warehouse automation firm Symbotic to Neutral from Buy, saying a slowdown in revenue growth as the company shifts to its next-generation storage system.
The brokerage said timing changes in project starts will weigh on fiscal 2026 sales, though it expects revenue to reaccelerate in fiscal 2027 as deployments of the new system ramp.
Davidson raised its price target to $47 from $35.
The firm cut its revenue forecast for fiscal 2026 to $2.68 billion from $2.84 billion, while its adjusted EBITDA estimate fell to $280 million from $341 million.
Fiscal 2025 revenue was raised slightly to $2.24 billion to reflect stronger third-quarter performance, while initial fiscal 2027 revenue was set at $3.26 billion.
Davidson said Symbotic’s new storage system should allow faster scaling over time, with shorter installation windows helping customer adoption.
It added that the company’s backlog and technology advantages remain intact, but near-term growth deceleration leaves the stock fairly valued.
Adjusted EBITDA for fiscal 2025 is now forecast at $143 million, compared with a prior $126 million, with fiscal 2027 expected to reach $460 million.
“We are reducing our revenue and adj. EBITDA projections for FY26, reflecting timing shifts in project starts as SYM begins to roll out its highly innovative and proprietary next gen storage system (buffering structure),” analyst at DA Davidson said.