Citigroup Raises PT on Zebra Technologies to $342, Maintains Neutral Rating

Citigroup Raises PT on Zebra Technologies to $342, Maintains Neutral Rating

Citigroup has raised its price target on Zebra Technologies (ZBRA) to $342, while maintaining a Neutral rating. The update comes as the company reported strong financial performance in its latest quarter, with a 12% year-over-year increase in sales exceeding $1.3 billion [1]. The brokerage cited a robust adjusted EBITDA margin of 22.3%, a 240 basis point increase from the previous year, and a 42% year-over-year increase in non-GAAP diluted earnings per share to $4.02.

The updated price target reflects Citigroup's optimism about Zebra Technologies' future growth prospects. The company's strong performance across all major product categories and regions, as well as its efforts to diversify its supply chain, have contributed to the positive outlook. However, the brokerage also noted potential risks, including the $70 million gross profit impact from tariffs for the full year 2025 and the manufacturing vertical's lagging growth.

The latest price target from Citigroup aligns with the median analyst target of $280.0 for ZBRA, as reported by Quiver Quantitative [2]. The median target is derived from the price targets set by seven analysts over the past six months, with a range from $250.0 to $410.0. This suggests a broad consensus among analysts about ZBRA's potential, despite varying opinions on the stock's valuation.

Zebra Technologies' stock has seen increased interest from institutional investors, with 351 adding shares to their portfolios and 368 decreasing their positions in the most recent quarter [2]. This activity reflects the growing interest in the company's stock, driven by its strong financial performance and positive outlook.

In conclusion, Citigroup's updated price target on Zebra Technologies reflects the company's strong financial performance and positive outlook. However, investors should remain aware of potential risks, such as tariff impacts and manufacturing vertical growth. The latest price target aligns with the median analyst target, indicating a broad consensus about ZBRA's potential.

References:
[1] https://www.gurufocus.com/news/2968572/zebra-technologies-zbra-receives-upgrade-to-outperform-with-408-target-zbra-stock-news?mobile=true
[2] https://www.quiverquant.com/news/New+Analyst+Forecast%3A+%24ZBRA+Given+%24367.0+Price+Target