On Wednesday, DA Davidson analysts revised their rating on Symbotic Inc. (NASDAQ:SYM) stock, elevating it from Neutral to Buy while maintaining a price target of $35.00. The upgrade follows a thorough review of the company's financial restatements and the recent filing of its annual Form 10-K. The analysts expressed confidence in the stock, citing the company’s significant technological edge and strong visibility into future revenues.
Symbotic, which had to restate its accounting figures twice for the year 2024, filed its annual report in December after resolving the issues that had led to a delay. DA Davidson analysts have examined these restatements and believe them to be largely non-material, with no adverse effect on the company's backlog or cash flow statements. This assessment led to the upgrade of the stock rating.
The research firm underscored Symbotic's robust balance sheet, which boasts more than $700 million in cash and no debt, providing the company with considerable financial flexibility. The analysts also pointed to the long-term bullish thesis that remains intact for Symbotic, driven by its unique technology and a multi-year backlog that offers clear top-line visibility.
"We believe the secular tailwinds, massive technological differentiation/ moat, multi-year, backlog-informed top-line visibility are difficult to ignore," they said.
The report highlighted several near-term and medium-term catalysts that could potentially boost Symbotic's performance. These include ongoing product innovations, potential new customer engagements, international expansion efforts, and the development and adoption of GreenBox's Warehouse as a Service (WaaS) offering.
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