Symbotic (SYM 8.51%) stock closed out Wednesday's trading with big gains. The robotics and automation company's share price ended the daily session up 8.5%. Meanwhile, the S&P 500 (^GSPC -0.00%) was flat on the day, and the Nasdaq Composite (^IXIC 0.31%) rose 0.3%.
Symbotic stock's rally today was triggered by bullish coverage from an analyst. In a note published this morning, Arete Research initiated coverage on the company and gave its stock a buy rating.
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Symbotic stock soars on bullish analyst coverage
With the note it published today, Arete took a bullish stance on Symbotic and set a one-year price target of $50 per share for the stock. The coverage kicked off a wave of buying action, and the stock had been up as much as 10.7% earlier in the daily session. Even after today's gains, Arete's price target implies additional upside of roughly 43% and reflects confidence in continued growth opportunities for the company.
What's next for Symbotic stock?
Symbotic stock has been on an impressive hot streak in 2025, with excitement surrounding its artificial intelligence (AI) and robotics helping to push the company's share price up 47% year to date. The company now has a market capitalization of roughly $3.8 billion, but it's trading at a reasonable-looking 1.5 times this year's expected sales, and could still have room for substantial valuation upside.
While the business posted a net loss of $21 million in its last reported quarter, the robotics specialist managed to grow revenue 40% year over year in the period. Revenue growth could be uneven going forward, but there seems to be a good chance that the company will be able to increase its margins as its business continues to scale.
