Zebra Technologies: Barclays Maintains Equal-Weight, Raises PT to $301.

Zebra Technologies: Barclays Maintains Equal-Weight, Raises PT to $301.

Zebra Technologies Corporation (ZBRA) received an update from Barclays on July 2, 2025, with the investment bank maintaining an equal-weight rating but raising its price target (PT) to $301. This move follows the company's strong second quarter 2025 earnings report, which exceeded analyst expectations and guided higher for the full year [1].

In its earnings report, Zebra Technologies delivered an adjusted EPS of $3.61 on sales of $1.29 billion, beating the FactSet consensus of $3.34. The company also guided higher for the full year, expecting adjusted EPS between $15.25 and $15.75 [1]. This performance was driven by organic sales growth of 6.3% year-over-year, with notable growth in Asia Pacific and Latin America [2].

Barclays' decision to raise the PT reflects the company's solid financial performance and strategic initiatives. Zebra Technologies recently announced the acquisition of Elo Touch Solutions, a leading provider of Point-of-Sale, Interactive Display, and Self-Service Kiosks solutions, which is expected to contribute meaningfully to the company's growth [2]. Additionally, the company has been actively mitigating the impact of U.S. import tariffs by diversifying its global sourcing footprint [2].

However, investors should remain cautious, as the stock experienced significant volatility following the earnings announcement. Zebra's stock initially rose 2.72% in pre-market trading before closing down 10.63% on August 5, 2025, amid broader market concerns [2]. This disconnect between financial results and stock performance suggests that investors may be concerned about broader economic factors, competitive pressures, or the sustainability of growth rates.

Despite the mixed market reaction, Zebra Technologies' strong fundamentals, such as a 14.37% EBIT margin and 8.17% interest coverage, remain intact [3]. The company's strategic initiatives, including the Elo acquisition and tariff mitigation efforts, appear well-positioned to address some of these concerns. Investors are advised to monitor the company's progress and balance its solid fundamentals against mixed technical patterns.

References:
[1] https://www.investors.com/news/technology/zebra-stock-zbra-q2-2025-earnings/?mod=newsviewer_click&refcode=aflMarketWatch&src=A00619
[2] https://www.investing.com/news/company-news/zebra-technologies-q2-2025-slides-reveal-63-growth-elo-acquisition-strategy-93CH-4170980
[3] https://www.ainvest.com/news/stock-analysis-zebra-technologies-outlook-mixed-signals-technical-fundamentals-remain-balance-2508/