Symbotic selloff post earnings overdone, says Cantor Fitzgerald

Cantor Fitzgerald views the post-earnings selloff in shares of Symbotic as overdone and reiterates an Overweight rating on the name with a $60 price target. The drop in June quarter gross margin came as a negative surprise given that Symbotic had already moved past short-term system deployment challenges, the analyst tells investors in a research note. However, Cantor believes the negatives surrounding deployment challenges are overblown. The firm thinks Symbotic is now largely through any major deployment challenges and continues to believe that as the company’s hardware and software improve, it can generate over 10% annual recurring revenue of its hardware base.