raises Zebra Technologies stock target on strong first-quarter results

On Wednesday, financial services firm Stephens raised its price target on Zebra Technologies (NASDAQ: ZBRA), a company that specializes in tracking technology and solutions. The new stock target is set at $380, up from the previous $335, while maintaining an Overweight rating on the stock.

Zebra Technologies reported first-quarter earnings that beat analysts and consensus estimates. The company's revenue for the quarter was $1.18 billion, beating estimates of $1.15 billion. Adjusted EBITDA also reached US$234 million, higher than expectations of US$206 million and US$209 million. Adjusted earnings per share (EPS) came to $2.84, beating estimates of $2.40 and $2.44.

Following the earnings call, Stephens highlighted several key points, including a positive update on end market conditions and the company's guidance for fiscal 2024.

Stephens' raised price target for the stock retains the same implied multiple of about 31 times 2024 adjusted earnings per share, which now applies to the revised earnings forecast. This adjustment reflects the company's confidence in Zebra Technologies' continued financial success and market position.

Investment Professional Insights

As Stephens updates his outlook on Zebra Technologies, InvestingPro's live data and insights provide more context for investors considering the stock.have significant 13.34% Returns for the past week and 29.66% Zebra Technologies has shown significant recent growth over the past three months of returns. The company's share price is also near its 52-week high, 97.4% This threshold is consistent with the optimism that Stephens emphasized.

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InvestingPro Tips suggests that Zebra Technologies has a strong P/E ratio, with an adjusted P/E ratio of 12 months to Q4 2023 41.72. This high valuation is consistent with the company's EBITDA valuation multiple. While those metrics suggest a premium for the company's earnings, analysts predict the company will turn a profit this year on the back of solid performance over the past year.

For investors seeking a deeper understanding of Zebra Technologies, additional InvestingPro tips are available at, including insights on share price volatility and non-dividend payments.To access these tips and more, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount. Currently, Zebra Technologies has also listed 11 InvestingPro Tips to provide comprehensive analysis for wise investment decisions.

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