Symbotic price target lowered to $55 from $63 at KeyBanc

KeyBanc lowered the firm’s price target on Symbotic to $55 from $63 and keeps an Overweight rating on the shares. The firm notes Symbotic posted in-line Q1 results, but introduced new Q2 EBITDA guidance lighter than consensus on in-line revenues, suggesting a sequential step back in EBITDA margins despite about 55% year-over-year increase in sales at the midpoint. While nominally disappointing, KeyBanc thinks the Q2 outlook is more a reflection of lumpiness due to the timing of contract growth rather than an indication of any structural issues, and believes the Q2 guide could be modestly conservative.