The firm said it lowered its rating on the company, which designs, manufacturers, and sells specialty printing devices, based on a valuation call.
Imperial maintained its $85.50 price target on Zebra Technologies' stock.
Separately, TheStreet Ratings team rates ZEBRA TECHNOLOGIES CP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZEBRA TECHNOLOGIES CP (ZBRA) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 21.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- ZBRA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 5.82, which clearly demonstrates the ability to cover short-term cash needs.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, ZEBRA TECHNOLOGIES CP's return on equity exceeds that of both the industry average and the S&P 500.
- The gross profit margin for ZEBRA TECHNOLOGIES CP is rather high; currently it is at 53.52%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.43% is above that of the industry average.
- Net operating cash flow has significantly increased by 105.90% to $49.76 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 68.62%.
- You can view the full analysis from the report here: ZBRA Ratings Report