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Symbotic Shares Drop 10.9% as UBS Downgrades on Valuation and Customer Concentration Risks
Symbotic Shares Drop 10.9% as UBS Downgrades on Valuation and Customer Concentration Risks
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BTCCSquare news:
Symbotic's stock plunged 10.9% Tuesday after UBS downgraded the warehouse automation company to 'sell,' citing an unsustainable valuation and overreliance on a single customer. Despite raising its price target from $27 to $35, UBS noted the stock—trading above $54—remains disconnected from fundamentals.
Analyst Damian Karas highlighted stagnant backlog growth since 2023, with Walmart accounting for most commitments. Competition in warehouse automation intensifies as rivals challenge Symbotic's technology adoption. "The recent run-up isn't justifiable," Karas concluded, questioning growth assumptions baked into the stock's 130% year-to-date rally.
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