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Research Alert: CFRA Maintains Hold Opinion On Shares Of Zebra Technologies Corporation
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Zebra Technologies Corporation
Apr 30, 2024 1:02 PM

03:30 PM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We keep our 12-month target at $301 on a P/E of 20x our 2025 EPS view, near peer valuations. We lift our 2024 EPS view to $12.17 from $10.90 and 2025's to $15.06 from $15.04. ZBRA posted Q1 EPS of $2.84 vs. $3.94, beating consensus by $0.41. Sales dropped 17% on softer industry demand across the EVM (-12%) and AIT (-25%) segments due to printing headwinds, partially offset by mobile computing gains. Adj. EBITDA margin contracted 150 bps to 19.9%, despite $25M net savings in Q1. Management noted a modest recovery in demand with a pickup in large order activity, but we remain cautious about a broad-based rebound. We expect declines to persist for ZBRA's major products through 1H 2024 amid continued end-market softness and lower sales volume. This should be partially mitigated by relative strength in services/software and easing premium supply chain costs. While customer IT budgets remain pressured in the near term, we expect conditions to improve in 2H 2024 as ZBRA's marking/tracking solutions remain critical.

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