On Wednesday, Needham analysts revised the price target for Zebra Technologies (NASDAQ:ZBRA) shares, lowering it to $325 from the previous $395, while maintaining a Buy rating. The adjustment follows Zebra Technologies’ first-quarter financial results, which surpassed market expectations despite the company facing increasing complexity from tariff-related challenges. According to InvestingPro data, the stock has shown significant momentum with a 9.2% gain over the past week, though it remains undervalued based on Fair Value analysis.
The company reported an 11% increase in Q1 revenues, which was above both the consensus forecast of a 10% rise and the higher end of their own guidance. With a robust gross profit margin of 48.79% and trailing twelve-month earnings per share of $10.57, the company continues to demonstrate strong profitability metrics. This strong performance led to a positive response from investors, who were encouraged by the company’s outlook for the second quarter and the entire year of 2025. For deeper insights into Zebra Technologies’ financial health and growth prospects, investors can access the comprehensive Research Report available on InvestingPro. Notably, Zebra Technologies reiterated its 2025 revenue projections and only slightly adjusted its earnings expectations, with a modest 5% reduction at the midpoint.
Needham analysts acknowledged the company’s ability to navigate the dynamic market conditions effectively. "Despite tariff-related challenges growing more complex, ZBRA continues to adjust to the dynamic environment while still seeing strong demand across the business," the analyst stated. The firm also mentioned that they have adjusted their own EPS estimates to reflect the impact of tariffs and the macroeconomic landscape, but emphasized Zebra Technologies’ solid execution amidst a challenging environment.
The analyst’s comments also included a positive outlook on Zebra Technologies’ share value, noting, "ZBRA shares remain attractive at current levels." The endorsement of the stock’s attractiveness, coupled with the maintained Buy rating, suggests a confidence in the company’s ongoing performance and market position.
In other recent news, Zebra Technologies Corporation reported impressive financial results for the first quarter of 2025, surpassing earnings and revenue forecasts. The company achieved an earnings per share (EPS) of $4.02, which exceeded the forecasted $3.62, and revenue reached $1.31 billion, slightly above the expected $1.29 billion. This performance represents a 12% year-over-year increase in revenue, with significant growth in the Asset Intelligence and Tracking segment, which rose by 18%, and the Enterprise Visibility and Mobility segment, which grew by 9%. Additionally, Zebra Technologies has been actively expanding its capabilities in AI and machine vision, as evidenced by the recent acquisition of Photo Neo, a 3D machine vision company based in Eastern Europe, for $62 million. This acquisition is expected to contribute approximately 30 basis points to Zebra’s overall sales growth in 2025. The company has also set a full-year sales growth target of 3-7% and anticipates Q2 growth between 4-7%. Despite facing potential challenges from tariffs, Zebra Technologies remains committed to maintaining an adjusted EBITDA margin of 20-21% for the year. Analyst firms have not indicated any recent upgrades or downgrades, but the company’s strong performance and strategic initiatives suggest a positive outlook for the future.
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