11:29 AM EDT, 08/06/2025 (MT Newswires) -- Zebra Technologies' ( ZBRA ) beat Q2 earnings expectations, driven by lower-than anticipated tariffs and favorable foreign exchange trends, Morgan Stanley said Wednesday in a report.

The company's $1.3 billion acquisition of Elo Touch Solutions is expected to be accretive to earnings and expand Zebra's total addressable market by $8 billion, particularly in retail, kiosks and touchscreen solutions, Morgan Stanley said.

Despite the earnings beat, the company still faces uncertain demand in the retail sector, the report said.

Tariffs were less detrimental than forecast, boosting full-year EPS guidance, the report said.

Morgan Stanley raised its price target on Zebra's stock to $300 from $280 and maintained its equalweight rating.

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