Zebra Technologies (ZBRA) Stock Forecast & Price Target

Zebra Technologies has demonstrated robust financial performance, with Q4 sales reaching $1.334 billion, which reflects a 32% year-over-year increase and surpasses both its guidance of 28-31% and consensus expectations. The company's guidance for Q1 projects revenue growth of 8-11% year-over-year, indicating ongoing demand improvements across its various end markets, particularly following significant distributor destocking last year. Additionally, the adjusted gross margin reached 50.0%, improving by 380 basis points year-over-year, further strengthening the company's financial position and outlook for future revenue growth, with projected revenues for 2025 anticipated to rise between 3-7%.

Zebra Technologies has provided a FY2025 adjusted EPS guidance that is 7% below market expectations, leading to a negative sentiment around its stock. The company anticipates a $20 million gross profit headwind from recently announced tariffs on imports from Mexico and China, along with an adjusted EBITDA margin of approximately 21%, which reflects a decline due to normal seasonality. Additionally, concerns regarding potential global economic slowdown, supply chain issues, and increased competition further contribute to a bearish outlook on the firm’s financial performance.