What Happened?
Shares of enterprise data capture company Zebra Technologies (NASDAQ: ZBRA) jumped 3.1% in the morning session after an analyst at Barclays upgraded the stock's rating to Overweight from Equal-Weight and raised the price target.
Barclays analyst Tim Long lifted the price target on Zebra Technologies to $375 from $301. The analyst noted that the improved outlook was due to favorable market conditions and the company's performance trajectory. The upgrade suggested a positive view of the stock's potential future performance. Adding to the positive sentiment, Zebra also announced a collaboration with Tulip. The partnership aimed to integrate Zebra's mobile computers with Tulip's platform for frontline manufacturing operations.
After the initial pop the shares cooled down to $306.03, up 3.2% from previous close.
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What Is The Market Telling Us
Zebra’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 4.5% on the news that the company announced it completed its acquisition of Elo Touch Solutions. Management reported that the deal would expand Zebra's potential market by approximately $8 billion. The acquisition was expected to boost the company's focus on customer-facing processes in markets such as retail, hospitality, healthcare, and industrial automation. Elo Touch Solutions was an innovator in tools that engaged customers and improved self-service. The move came amid robust demand for automation and real-time workflow solutions, fueled by the expansion of e-commerce and increased supply chain demands.
Zebra is down 20.3% since the beginning of the year, and at $306.03 per share, it is trading 27.3% below its 52-week high of $421.11 from January 2025. Investors who bought $1,000 worth of Zebra’s shares 5 years ago would now be looking at an investment worth $1,097.
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