On Friday, TD Cowen adjusted its perspective on Symbotic Inc. (NASDAQ: NASDAQ:SYM), decreasing the price target to $45 from the previous $50 while still endorsing the stock with a Buy rating.
According to InvestingPro data, analyst targets for Symbotic range from $10 to $60, with the stock showing significant volatility over the past year. The adjustment follows a recent review of the company's financials, necessitating changes to the analyst's model.
The revision was prompted by Symbotic's latest 10-K filing, which led to restatements impacting the company's financial projections. Despite current challenges, InvestingPro data shows impressive revenue growth of nearly 55% in the last twelve months, with analysts expecting continued growth this year.
The analyst from TD Cowen recalibrated the model to distribute the first quarter adjustment evenly throughout the fiscal year 2025 and adjusted the baseline for fiscal year 2026. The analyst noted that the impact on fiscal year 2026 could be minimal as the affected projects are expected to conclude.
The new price target set by TD Cowen implies approximately an 8x forward EV/Sales ratio for Symbotic. This metric is a valuation measure used to compare the company's current enterprise value with its sales, adjusted for the expected future period.
Symbotic, listed on the NASDAQ, specializes in automation technology for supply chain operations. The company's financial restatements and subsequent model updates by analysts are closely watched by investors seeking to understand the potential future performance of the stock.
The maintained Buy rating suggests that, despite the reduction in the price target, TD Cowen continues to view Symbotic's shares positively. Investors may consider this information when making decisions about their positions in the company.
In other recent news, Symbotic Inc. has experienced a series of developments. The company reported a 55% year-over-year increase in Q4 revenue, hitting $577 million and wrapping up the fiscal year with a total revenue of $1.8 billion.
In response to additional accounting errors, Symbotic revised its financial projections for fiscal year 2024 and Q1 of fiscal year 2025, leading to analyst downgrades from KeyBanc Capital Markets and DA Davidson. Despite the downgrades, TD Cowen, Deutsche Bank (ETR:DBKGn), and KeyBanc all increased their price targets for Symbotic, maintaining positive ratings on the stock.
Symbotic has begun construction on a second GreenBox facility in Georgia and declared a partnership with Walmart (NYSE:WMT) Mexico, projected to add approximately $400 million to the company's backlog. The company also anticipates a 40% year-over-year increase for the first quarter of 2025, bolstered by the acquisition of Veo Robotics.
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