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Symbotic stock upgraded to buy with $50 target by DA Davidson

Published 07/02/2024, 16:22
Updated 07/02/2024, 16:24
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On Wednesday, DA Davidson changed its rating for Symbotic Inc. (NASDAQ:SYM) from Neutral to Buy, maintaining a price target of $50.00. The revision came after the company's shares experienced a 24% decline following its first-quarter results for fiscal year 2024 and its second-quarter forecast.

The firm cited the recent pullback in stock price as an opportunity, acknowledging the company's planned expenditures as necessary for scaling its operations, maintaining quality, and meeting installation and operational goals across various customer scenarios. DA Davidson highlighted the long-term visibility of Symbotic's revenue, bolstered by a substantial $23 billion backlog. The firm also pointed out the company's strong balance sheet, characterized by significant cash reserves and no debt, which they believe provides financial flexibility for future opportunities.

DA Davidson expressed confidence in the long-term fundamentals of Symbotic, describing its technology as unmatched and highly differentiated within the market. The analyst's comments emphasized the strategic investments made by the company to support its ability to scale and the robustness of its order book, which provides clear visibility into its future revenues.

The backing by DA Davidson reflects a positive outlook for Symbotic's growth trajectory and market position. The company's financial health and technological edge are seen as key drivers for its potential success in the eyes of the firm.

Symbotic's commitment to investing in its capabilities and the strength of its balance sheet are expected to underpin its ability to meet the demands of a growing customer base and to navigate the competitive landscape effectively.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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