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Research Alert: CFRA Maintains A Hold Rating For Zebra Technologies Corporation

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

We raise our target price from $245 to $271, based on 13.5x our 2027 EPS estimate, reflecting increased confidence in ZBRA's ongoing favorable business mix. We increase our 2026 EPS estimate from $17.51 to $18.25 and 2027's from $19.97 to $20.10, led by better-than-expected Q1 gross margin performance (+80 bps Y/Y), organic growth (4%+ in Q1), and manufacturing demand driving favorable mix. We expect ZBRA to benefit from RFID adoption, AI-enabled solutions gaining traction, machine vision inflecting to double-digit growth, and Elo Touch synergies supporting the 22% EBITDA margin target. However, we remain cautious given the margin headwind from memory inflation, elevated 2.1x net leverage constraining flexibility, and manufacturing strength that may prove cyclical. This margin execution risk, combined with revenue growth decelerating in 2027 as M&A contribution rolls off and simultaneous integration of two acquisitions while commercializing early-stage AI solutions, supports our Hold rating.

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