Goldman Sachs analyst Mark Delaney maintained a Sell rating on Symbotic yesterday and set a price target of $47.00.
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Mark Delaney has given his Sell rating due to a combination of factors including the significant rise in Symbotic’s stock price, which has surged 260% year-to-date compared to the S&P 500’s 16% increase. This substantial outperformance is largely driven by market enthusiasm for automation and robotics, as well as the company’s strong relationship with Walmart, which constitutes a major portion of its revenue. However, despite the robust EBITDA growth, future projections have been revised downward, indicating potential challenges ahead.
Additionally, while Symbotic has secured substantial orders from Walmart and its joint venture with SoftBank, new customer acquisition has been limited. This reliance on a few large clients raises concerns about the company’s ability to sustain growth. The cash flow growth is expected to lag behind EBITDA growth due to the nature of the joint venture with SoftBank, which may not generate significant initial cash flow. These factors contribute to the view that the current stock price does not adequately reflect the potential risks and slowing growth prospects.
According to TipRanks, Delaney is a 5-star analyst with an average return of 18.7% and a 62.11% success rate. Delaney covers the Consumer Cyclical sector, focusing on stocks such as Tesla, General Motors, and Gentex.
In another report released on November 26, Barclays also maintained a Sell rating on the stock with a $41.00 price target.