Shares of Symbotic (SYM +10.30%) charged sharply higher Wednesday morning, soaring as much as 12.5%. As of 11:47 a.m. ET, the stock was still up 9.9%.
The catalyst that sent the artificial intelligence (AI) and warehouse automation specialist higher was bullish calls from a couple of Wall Street analysts.
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Adjusting their models
On Monday, Symbotic reported the results for its 2025 fourth quarter (ended Sept. 27), and investors let out a collective cheer. Revenue of $618 million grew 9% year over year, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 17% to $49 million. Management raised its outlook on the heels of the results, forecasting first-quarter revenue of $620 million and EBITDA of $51 million at the midpoint of its guidance -- ahead of Wall Street's expectations. The stock surged 35% Tuesday following the results.
Wall Street was playing catch-up on Wednesday, with several analysts increasing their price targets and one issuing an upgrade in response to the robust report and the resulting stock price increase.
Craig-Hallum analyst Greg Palm upgraded Symbotic stock to buy and increased his price target to $70, which is significantly lower than the stock's current price of about $85 (as of this writing). The analyst cited the company's revenue acceleration and the potential for significant margin expansion as factors contributing to his bullish call.
Baird analyst Robert Mason maintained a neutral (hold) rating while increasing his price target on Symbotic to $58. The analyst was perplexed by the surge, calling it "a bit odd," particularly since the company's mid-term outlook is unchanged.
Given Symbotic's recent surge, it isn't as cheap as it was, but at roughly 3 times forward sales, the stock is certainly worth a second look.
