On Wednesday, Stephens, a financial services firm, has increased its stock price target for Zebra Technologies (NASDAQ: ZBRA), a company specializing in tracking technology and solutions. The new stock target is set at $380, up from the previous $335, while the Overweight rating on the stock is maintained.
Zebra Technologies reported first-quarter earnings that surpassed both the analyst's and the consensus estimates. The company's revenue for the quarter came in at $1.18 billion, exceeding expectations of $1.15 billion. Adjusted EBITDA was also higher at $234 million, compared to the anticipated $206 million and $209 million. Adjusted earnings per share (EPS) reached $2.84, outperforming the forecasted $2.40 and $2.44.
In the wake of the earnings call, Stephens underscored several key points, including positive updates on end-market conditions and the company's guidance for the fiscal year 2024. The firm's analysts pointed out that investor sentiment appeared optimistic following the disclosure of the company's performance.
The stock raised price target from Stephens retains the same implied multiple of approximately 31 times the adjusted EPS for 2024, now applied to the revised earnings estimate. This adjustment reflects the firm's confidence in Zebra Technologies' continued financial success and market position.
InvestingPro Insights
As Stephens updates its outlook on Zebra Technologies, real-time data and insights from InvestingPro provide additional context for investors considering the stock. With a notable 13.34% return over the last week and a 29.66% return over the last three months, Zebra Technologies has demonstrated significant recent growth. The company's stock is also trading near its 52-week high, at 97.4% of this threshold, aligning with the optimistic sentiment highlighted by Stephens.
InvestingPro Tips indicate that Zebra Technologies is trading at a high earnings multiple, with an adjusted P/E ratio from the last twelve months as of Q4 2023 at 41.72. This high valuation is echoed in the company's EBITDA valuation multiple. While these metrics suggest a premium on the company's earnings, analysts predict profitability for the year, supported by a solid performance over the past year.
For investors seeking a deeper dive into Zebra Technologies, there are additional InvestingPro Tips available at https://www.investing.com/pro/ZBRA, including insights on stock price volatility and the absence of dividend payouts. To access these tips and more, use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 11 more InvestingPro Tips listed for Zebra Technologies, providing a comprehensive analysis for informed investment decisions.
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