On Wednesday, TD Cowen has increased the stock price target for Zebra Technologies (NASDAQ:ZBRA) to $425.00, up from the previous target of $380.00, while reiterating a Buy rating on the stock. The firm's decision is based on a brighter outlook for the company's future performance, as normal business activities resume and the potential for a refresh cycle related to COVID-19 content emerges.
The analyst from TD Cowen expressed that the firm has gained "incremental confidence" in its fiscal year 2025 estimates for Zebra Technologies, which are notably higher than the consensus. This confidence stems from the return to more normalized activity, although they acknowledge that decision timelines for large projects remain extended.
Zebra Technologies is also poised for continued strength into fiscal year 2026 if a refresh cycle develops for COVID content, which would represent an additional upside. In such a scenario, the analyst suggests that Zebra Technologies could approach its previous peak earnings per share (EPS) of nearly $20.
The new stock price target of $425.00 implies a valuation of approximately 25 times the estimated earnings per share for fiscal year 2025 and 22.5 times the forecasted free cash flow. The analyst's statement highlights the potential for Zebra Technologies to continue its strong performance in the coming years.
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