TD Cowen on Zebra Technologies (ZBRA): 'Don't See Valuation As Sustainable'

TD Cowen analyst Joseph Giordano reiterated a Buy rating and $400.00 price target on Zebra Technologies (NASDAQ: ZBRA).

The analyst commented: "Don't See Valuation As Sustainable; ZBRA faded some of the initial gain, but held most of it, and that alone is a good sign. Memory concerns simply aren't materializing to the level some feared, and management continues to deliver on commitments. Implied 2H seems reasonable/conservative given current environment, and numbers move higher. 10x forward EPS for company with 50% GMs growing EPS high teens seems like a major opportunity. Our PT remains at $400 and our numbers move higher. Memory concerns, while valid at a high level, appear to be well managed internally in a very dynamic environment with visibility through year-end. We do not agree with terminal value theses that some have put forward regarding the steady removal of people at buildings that leverage ZBRA. The tasks will still need to be done (whether by a human or a robot leveraging the same tech), and as a core partner we believe ZBRA is best positioned to evolve with the changing needs of their customer base. Their portfolio is best in class, and valuation here doesn't make much sense to us unless there are going concern issues, which we don't see."

For an analyst ratings summary and ratings history on Zebra Technologies click here. For more ratings news on Zebra Technologies click here.

Shares of Zebra Technologies closed at $241.79 yesterday.

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