Analyst Joseph C Giordano of TD Cowen maintained a Buy rating on Zebra Tech, retaining the price target of $400.00.
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Joseph C Giordano has given his Buy rating due to a combination of factors that suggest a positive outlook for Zebra Tech. Despite a less robust fourth-quarter growth guide than anticipated, the variance is minimal, and the revised 2026 projections are achievable even with growth below the low end of the expected range and minimal EBITDA margin expansion. This indicates a de-risked scenario for the company.
Giordano believes that the key markets of warehouse, logistics, and retail automation are in the early stages of recovery, and while industrial markets are currently soft, they are not expected to decline significantly. The management’s lack of commitment to 2026 growth is understandable given the timing, but the Street’s expectations can likely be met with growth below the 5-7% framework. The updated model assumes conservative growth and flat year-over-year EBITDA margins, with potential for growth to accelerate through 2026 and opportunities to leverage operating expenses as revenue increases. Although tariff risks on semiconductors remain a concern, the exposure has been revised lower this quarter, supporting the $400 price target with a modestly higher multiple on de-risked earnings.
According to TipRanks, C Giordano is a 5-star analyst with an average return of 11.6% and a 59.94% success rate. C Giordano covers the Industrials sector, focusing on stocks such as Emerson Electric Company, Mueller Water Products, and Watts Water Technologies.