The post-earnings momentum exhibited by Zebra Technologies is unlikely to fade anytime soon, according to KeyBanc. The bank upgraded the maker of barcode scanners and RFID readers to overweight from sector weight. It also put a $305 price target on shares, implying 26% upside from Tuesday’s close. Zebra on Tuesday reported first-quarter results that beat analyst expectations, sending shares higher by more than 11% for their best day in a year. “We think the combo of inflecting short cycle demand, improving cost execution, and management’s conservative guide track record could support upside to consensus and multiple expansion more in line with its I-Tech peers,” analyst Ken Newman said in a note to clients. ZBRA 1D mountain Shares of Zebra Technologies got a boost from the company’s first-quarter earnings report. Zebra Technologies also said that its earnings per share would come in between $18.30 and $18.70 per share by the end of this year, marking an increase from its previous guidance. “While we acknowledge that visibility into longer-term trends in memory costs and broader retail IT capex budgets remain limited, we think those concerns may already be well reflected in ZBRA’s multiple, inclusive of the LDD price action seen following the earnings call,” Newman wrote. KeyBanc’s call falls in line with consensus on Wall Street. Of the 20 analysts covering Zebra Technologies, 13 have a buy or strong buy on the stock, LSEG data shows. Shares are flat year to date, underperforming the overall market.
