Since the start of 2023, companies that can harness artificial intelligence (AI) have experienced high demand. Symbotic (SYM -4.70%) is one such company, providing AI-powered warehouse automation solutions.

The stock is up 54% over the past year, but after the company's blowout financial results, one Wall Street analyst believes there's more to come.

Revolutionizing warehouse automation

Deutsche Bank analyst Nicole DeBlase raised her price target on Symbotic to $58 while reiterating a buy rating on the shares. This represents potential upside for investors of 38% compared to the stock's closing price on Monday. Symbotic's breakout financial results fueled her enthusiasm -- and there was plenty to like.

For the company's fiscal second quarter (ended March 30), Symbotic reported revenue that jumped 59% year over year to $424 million. The company made progress toward profitability, generating adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $22 million, well ahead of a loss of $55 million in the year-ago quarter.

Symbotic's turnkey, end-to-end warehouse automation systems have the potential to revolutionize logistics. These systems optimize both traffic and storage, reducing the amount of warehouse space needed, which also saves time and money.

The company also made progress in reducing the time needed to install its systems. After setting a new deployment record in the first quarter, Symbotic was able to match that record with several subsequent deployments. By decreasing the time needed to implement these systems, Symbotic is expanding its sales and profit potential.

Finally, management is forecasting fiscal third-quarter revenue of $460 million at the midpoint of its guidance, representing growth of 47%. The company has historically issued conservative guidance, so the results could be better. It's important to remember, however, that the sales and deployment of these systems tend to be lumpy, which could impact quarterly growth. As such, investors should focus on the long term, which will tend to smooth out those lumpy results.

Finally, with the stock selling for just 2 times sales, Symbotic offers solid AI-fueled growth at an attractive valuation.