Why Symbotic Stock Plunged Today
Portfolio Pulse from Ryan Gustafson
Shares of Symbotic Inc. (NASDAQ:SYM) fell after William Blair analyst Ross Sparenblek downgraded the stock from Outperform to Market Perform. Despite acknowledging the company's strong Q3 results and promising 'land-and-expand' strategy, Sparenblek deemed the company's valuation to be stretched at 80.0 times his fiscal 2025 EBITDA estimate and 11.0 times his fiscal 2025 revenue estimate. He also noted a large short-cover rally in Symbotic’s stock, suggesting a potential revisitation of the rating if shares consolidate.
August 04, 2023 | 10:36 am
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NEGATIVE IMPACT
Symbotic Inc.'s stock was downgraded by a William Blair analyst due to a stretched valuation, despite strong Q3 results and a promising strategy. This led to a drop in the company's shares.
The downgrade by the William Blair analyst is a direct negative impact on Symbotic Inc.'s stock. Despite the company's strong Q3 results and promising strategy, the analyst deemed the company's valuation to be stretched, which led to a drop in the company's shares. The analyst also noted a large short-cover rally in Symbotic’s stock, suggesting a potential revisitation of the rating if shares consolidate, which could further impact the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100