Symbotic downgraded to Sell from Neutral at UBS

UBS downgraded Symbotic (SYM) to Sell from Neutral with a price target of $35, up from $27. The shares are up 170% since April 1 without much evidence of a growth acceleration or new business wins outside outside of Symbotic’s main customer Walmart (WMT), the analyst tells investors in a research note. The firm believes the company’s fiscal Q3 results did not demonstrate meaningful progress on customer expansion and suggesed sales headwinds over the next three quarters. As such, UBS is more skeptical of an earnings acceleration required to justify Symbotic’s “high valuation.”