Financial Wire

Research Alert: We Maintain Our Hold Rating On Zebra Technologies Corporation

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We are reducing our 12-month price target to $245 from $294, reflecting valuation multiple compression driven by multiple near-term headwinds facing the company. We are maintaining our FY 26 and FY 27 EPS estimates of $17.51 and $19.97, respectively. The compressed multiple reflects several key concerns. First, margin pressure from escalating component costs is likely to persist through at least the first half of FY 26, constraining profitability even as revenues grow. Second, organic demand remains uneven across key end markets, creating visibility challenges. Third, the company's elevated debt levels limit financial flexibility and increase sensitivity to interest rate fluctuations. Finally, execution risks remain elevated as management navigates cost mitigation strategies while attempting to preserve market share in an increasingly competitive landscape. Until we see clearer evidence of margin stabilization and improved demand visibility, we believe a more conservative valuation approach is prudent.

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