Zebra Technologies downgraded to Underperform from Peer Perform at Wolfe Research

Wolfe Research analyst Nigel Coe downgraded Zebra Technologies to Underperform from Peer Perform with a $26 price target. Coe believes consensus estimates are still too high for 2023, and the analyst is modeling 5% organic revenue declines in 2023, which would still put the 2019-2023 organic CAGR at ~4.5%. The analyst tells investors in a research note that multiples have reset substantially lower since the beginning of the year, but the current valuation is not cheap enough yet to be supportive of the stock.