ZBRA - Zebra Technologies rises as Credit Suisse upgrades ahead of Q1

2023-04-25 08:14:59 ET

• Zebra Technologies ( NASDAQ: ZBRA ) shares rose 1% in pre-market trading on Tuesday as Credit Suisse upgraded the mobile computing company, citing strength in Europe, the Middle East and Asia.
• Analyst Guy Hardwick raised his rating on Zebra Technologies ( ZBRA ) shares to outperform from neutral, noting that Europe is likely to drive any upside in earnings per share and help with guidance.
• "EMEA accounts for 33% of revenues, based on our channel checks, we expect 1Q underlying growth (ex-Ukraine/Russia) in the region to be [between mid single digits and high single digits]," Hardwick wrote in a note. "European distributors are not de-stocking yet, and our sense is sell-in is stronger than sell-out in EMEA, a positive for ZBRA."
• Hardwick also boosted his per-share price target on Zebra ( ZBRA ) to $326 from $311.
• Despite the expected strength coming out of Europe, Hardwick added that the company's U.S. business is "mixed," as inventories are above normal levels and some distributors are not working on reducing them just yet.
• Zebra ( ZBRA ) is slated to report first-quarter results on May 2 .

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