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Zebra Technologies: Recovery Strengthens but Modest Organic Growth Supports Neutral Hold Rating

Zebra Technologies: Recovery Strengthens but Modest Organic Growth Supports Neutral Hold Rating

William Blair analyst Brian Drab has maintained their neutral stance on ZBRA stock, giving a Hold rating yesterday.

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Brian Drab has given his Hold rating due to a combination of factors that balance improving fundamentals with limited near‑term upside. Zebra delivered stronger-than-expected revenue and in-line EPS, and its guidance for both the upcoming quarter and full-year 2026 is ahead of what the market had been anticipating, signaling an ongoing recovery in demand.

At the same time, underlying organic growth, at roughly low single digits, remains modest when acquisitions and currency effects are stripped out, suggesting that the recovery is still gradual. While growth in Asia-Pacific, Latin America, and a rebound in EMEA, along with strength in healthcare, manufacturing, and retail and e-commerce, are encouraging, softness in the logistics segment and tough prior-year comparisons temper the outlook, supporting a neutral, Hold stance rather than a more aggressive rating.

In another report released yesterday, Morgan Stanley also maintained a Hold rating on the stock with a $323.00 price target.

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