Zebra Analysts Upgrade Stock, Forecasting Major Reversal

Core Viewpoint - Zebra Technologies is experiencing a stock price reversal, with analysts showing increased optimism and raising price targets, indicating potential for further growth in the coming months [4][8][9]. Group 1: Analyst Ratings and Market Sentiment - Analysts have upgraded Zebra Technologies' sentiment rating from Hold to Moderate Buy, with a price target set at $305, which is 7% below the consensus [3]. - The stock has seen a 50% increase from its recent low, with analysts projecting a further 5% to 7% gain soon, potentially leading to a total increase of 50% over the next 12 to 18 months [8][9]. - Institutional ownership has doubled over the last three years, indicating strong investor conviction and net bullish activity for three consecutive quarters [9]. Group 2: Financial Performance and Growth Outlook - Zebra Technologies faced challenges in Q1, resulting in a year-over-year contraction, but management has increased guidance due to better-than-expected performance [4]. - The company anticipates mid-single to low-double-digit quarterly growth, with analysts forecasting sustained growth at this rate into F2025 [4][6]. - The projected earnings growth rate is 22.96%, driven by the company's leading position in data capture and an upcoming AI-inspired upgrade cycle [6]. Group 3: Technical and Operational Insights - The technical outlook for Zebra Technologies is bullish, with expectations of retesting highs near $335 and $350 by year-end [14]. - The company has improved its balance sheet and shareholder equity over the past year, with debt leverage now less than 0.7x equity, positioning it well for future investments [13]. - Despite not paying dividends or aggressively repurchasing shares, Zebra is focused on efficiency and growth investments [13].