Zebra Earnings: Results and Outlook Again Beat Our Expectations, and We Raise Our Valuation

We raise our fair value estimate for shares of narrow-moat Zebra Technologies to $365, from $340, after raising our short-term growth expectations. Zebra is in the midst of a recovery from a sharp downturn in demand in 2023, and the results in 2024 have been better than we expected. From an initial guide of roughly 1% revenue growth for 2024, we now expect 8% growth. We believe growth can continue at this pace in 2025 with customer inventories at normal levels and end consumer demand returning. Zebra is well set up for long-term growth as it benefits from trends toward digital transformation, despite choppy results following the covid-19 pandemic. Shares are up about 5% in intraday trading on positive results and guidance, and we see Zebra’s stock as fairly valued.