KeyBanc says the post-earnings momentum Zebra Technologies has shown is unlikely to slow down anytime soon. The bank upgraded the maker of barcode scanners and RFID readers from sector weight to overweight. It also has a $305 price target on the stock, suggesting an upside of 26% from Tuesday’s closing price. Zebra on Tuesday reported first-quarter results that beat analysts’ expectations, and the stock rose more than 11%, its best day in a year. “We believe the combination of leveraging short-cycle demand, improved cost execution, and management’s conservative policy track record could support consensus upside and multiple expansions that are more in line with ITEC’s peers,” analyst Ken Newman said in a note to clients. ZBRA 1D Mountain Zebra Technologies stock rose on the company’s first quarter earnings report. Zebra Technologies also announced that it now expects earnings per share of $18.30 to $18.70 by the end of the year, an increase from its previous guidance. “While we acknowledge that visibility into long-term trends in memory costs and broader retail IT capital spending budgets remains limited, these concerns may already be well reflected in ZBRA’s multiples, including the price movement in LDD seen following the earnings release,” Newman wrote. KeyBanc’s call is consistent with Wall Street consensus. According to LSEG data, 13 out of 20 analysts covering Zebra Technologies rate the stock as a buy or strong buy. Stock prices have been flat since the beginning of the year, underperforming the broader market.
