William Blair analyst Ross Sparenblek has maintained their neutral stance on SYM stock, giving a Hold rating today.
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Ross Sparenblek has given his Hold rating due to a combination of factors affecting Symbotic’s current market position. Despite reporting fiscal third-quarter results that exceeded expectations, the company’s fourth-quarter guidance fell short of consensus estimates, which has raised concerns about its near-term growth prospects. The revenue and adjusted EBITDA projections for the upcoming quarter are below what analysts anticipated, indicating potential challenges in meeting market expectations.
Furthermore, while Symbotic has a substantial backlog, the progress in its production ramp-up is uncertain, partly due to the slow development of the GreenBox 3PL joint venture and the lack of a significant customer base. Additionally, the initial excitement surrounding its European expansion and partnerships with major clients has diminished. However, the company is making strides with Walmart and has launched its Next Generation Structure, which could address some of the production issues. Despite these advancements, the overall uncertainty and risks associated with Symbotic’s growth trajectory justify the Hold rating.
In another report released today, Robert W. Baird also downgraded the stock to a Hold with a $55.00 price target.