Symbotic faces downgrades from KeyBanc, DA Davidson, and Craig-Hallum due to accounting issues and financial uncertainty.
Sectors & Industries
November 29, 2024
First up is KeyBanc Capital Markets, which downgraded Symbotic from "Overweight" to "Sector Weight." he downgrade follows the company's announcement of accounting errors tied to revenue recognition, resulting in a $30-$40 million hit to FY24 EBITDA projections.
Next is DA Davidson, which downgraded Symbotic from "Buy" to "Neutral" and reduced its price target to $35. The firm flagged concerns about delayed 10-K filings and financial reporting issues stemming from additional accounting errors.
Lastly, Craig-Hallum dropped Symbotic’s rating from "Buy" to "Hold," slashing its price target to $25 from $45. Analyst Greg Palm cited the company's “credibility hit” from the accounting mishap as the key reason for the downgrade.
Accounting errors and their impact on financial reporting have raised red flags, leading analysts to adopt a more cautious outlook. Investors will be watching closely as Symbotic works to restore trust and stability.
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