KeyBanc raised its rating on Symbotic Inc. (NASDAQ: SYM) to Overweight from Sector Weight and assigned a $70.00 price target, citing management's improved visibility on translating recent efficiency gains into faster deployments. At the time of the note the stock was trading at $54.01 and Symbotic's market capitalization stood at about $32.5 billion.
The upgrade was issued after investor meetings in New York City and Boston that included Symbotic's Chief Financial Officer Izzy Martins and Vice President of Investor Relations Charlie Anderson. Those sessions were hosted by KeyBanc analyst Ken Newman.
KeyBanc said Symbotic's management now has a clearer line of sight to leverage operational efficiency gains to accelerate deployments against the company's backlog, which the note places at approximately $22.3 billion. The firm flagged several potential catalysts tied to the company's ability to service new end-market verticals.
According to InvestingPro data included in the brief, Symbotic has posted strong top-line growth, with revenue expanding 24.8% over the last twelve months. KeyBanc highlighted new verticals that could drive additional demand: Frozen/Perishable, Micro Fulfillment, Healthcare, and Apparel.
InvestingPro analysis noted that Symbotic is trading below its assessed Fair Value and that analysts are forecasting roughly 23% revenue growth for the current fiscal year. KeyBanc suggested that successful execution in the cited verticals could produce upside to both the firm's estimates and broader consensus projections. Supporting this view, InvestingPro data shows seven analysts have recently revised earnings expectations higher for the upcoming period.
Recent financials and other broker activity
Symbotic reported mixed results for the first quarter of fiscal 2026. The company posted earnings per share of $0.02, below the $0.08 that had been expected - a 75% shortfall versus the consensus EPS estimate. Revenue, however, beat expectations at $630.0 million compared with a forecast of $622.58 million.
In related analyst activity, DA Davidson increased its price target on Symbotic to $57, up from $53, while keeping a Neutral rating. DA Davidson cited expectations for accelerated organic sales growth through fiscal year 2027 as the rationale for the revised target.
Combined, the upgrade from KeyBanc, the recent earnings print and DA Davidson's target update illustrate a company at a crossroads: revenue momentum and expanding market opportunities on one hand, and near-term earnings execution that has missed street expectations on the other.
Investors and market participants will be watching whether management can convert efficiency improvements into faster deployments and tangible revenue gains across the new verticals KeyBanc identified. The firm's commentary suggests that successful execution could prompt upward revisions to both sell-side and internal forecasts.