On Tuesday, KeyBanc has increased the price target for Symbotic Inc. (NASDAQ: NASDAQ:SYM) to $48 from the previous $40, while keeping an Overweight rating on the stock. This adjustment follows the company's reported fourth-quarter earnings, which surpassed expectations due to higher revenue and EBITDA. The performance was attributed to significant advances in the company's 44 system deployments.
The company's shares showed an uptick in after-hours trading as a result of the financial beat. Symbotic's management brought attention to a notable achievement within the quarter, which included the completion of four systems and the deployment of nine. Additionally, the initiation of construction on a second GreenBox facility in Georgia was highlighted as a key development.
KeyBanc's analyst believes that despite the potential for variability in the upcoming quarters, the first-quarter outlook might be on the conservative side. This is due to Symbotic's improved execution and momentum in system completions and deployments, as well as expectations for an uptick in gross margins.
The analyst also pointed out that the relationship with Walmex could present a significant opportunity for Symbotic, potentially leading to more system deployments in the future. Based on these factors, KeyBanc maintains a positive view on the risk/reward balance for Symbotic's stock and has therefore decided to raise the price target.
In other recent news, automation technology leader Symbotic has reported a strong Q4, marked by a 55% year-over-year increase in revenue, reaching $577 million. The company's fiscal year concluded with a total revenue of $1.8 billion. Symbotic's recent expansion into Mexico, in partnership with Walmart (NYSE:WMT) Mexico, and the progression of its GreenBox project in Georgia were notable achievements.
The company also reported its first net income since its public debut. Looking forward, Symbotic anticipates robust growth with a projected 40% year-over-year increase for Q1 2025. The company's acquisition of Veo Robotics is expected to enhance its vision technology and support its planned sales force expansion.
Despite these positive developments, Symbotic noted macroeconomic changes influencing customer commitment to capital expenditures. The company's backlog decreased slightly from $22.8 million to $22.4 million, with no new customers added this quarter. However, the partnership with Walmart Mexico is expected to add approximately $400 million to the backlog.
InvestingPro Insights
Symbotic Inc. (NASDAQ: SYM) has shown impressive growth and potential, as reflected in KeyBanc's increased price target. This optimistic outlook is further supported by InvestingPro data, which reveals a robust revenue growth of 62.86% over the last twelve months as of Q3 2024. This aligns with the company's strong performance in system deployments and completions mentioned in the article.
InvestingPro Tips highlight that analysts anticipate sales growth in the current year, which corroborates KeyBanc's positive stance on the company's outlook. Additionally, the tip indicating that Symbotic holds more cash than debt on its balance sheet suggests a solid financial position, potentially enabling the company to fund its expansion plans, including the new GreenBox facility in Georgia.
Despite the recent stock price volatility, with a 10.96% decline over the past week, Symbotic has demonstrated a strong return of 21.41% over the last three months. This performance, coupled with analysts' expectations of profitability this year, underscores the company's potential for growth and improved financial health.
For investors seeking a more comprehensive analysis, InvestingPro offers 9 additional tips that could provide further insights into Symbotic's financial outlook and market position.
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