Zebra Technologies (ZBRA) is set to see a "more balanced" risk-reward in the near term and minimal downside to its 2025 estimates amid improving demand trends and normalizing large customer activity, Morgan Stanley said in a note Monday.
"We believe ZBRA's underlying demand environment is in a healthier position today," the investment firm said, noting that the retail, e-commerce, and travel and leisure sectors continue to stabilize.
According to Morgan Stanley, Zebra Technologies' large North American projects picked up in Q3 and this momentum is expected to continue into Q4. The investment firm also said the company's 2025 estimates are "de-risked," with a potential for a "meaningful refresh recycle."
Morgan Stanley upgraded Zebra Technologies to equal-weight from underweight, with a higher price target of $400 from $305.
Price: 411.61, Change: +4.61, Percent Change: +1.13
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