Symbotic’s Efficiency Leap and Strategic Walmart Partnership Warrant a Buy Rating

Analyst Joseph C Giordano from TD Cowen maintained a Buy rating on Symbotic (SYM – Research Report) and keeping the price target at $55.00.

Joseph C Giordano has given his Buy rating due to a combination of factors reflecting Symbotic’s operational and technological improvements, as well as its strategic partnership with Walmart (WMT). Giordano recognizes the company’s recent advancements, such as the 40% reduction in required robots and the development of new robots with double the payload capacity, as significant enhancements to efficiency. Furthermore, the expectation that Walmart will likely incorporate Symbotic’s systems into each of its 42 regional distribution centers—which is already considered within the nearly $23 billion backlog—supports the optimistic outlook.
Giordano’s Buy rating also factors in Symbotic’s contribution to inventory management and the potential to revolutionize Walmart’s e-commerce fulfillment. The ability for Walmart to manage inventory more effectively by receiving less than a full case of goods, coupled with the opportunity to streamline online order fulfillment directly from the distribution centers, positions Symbotic as a key player in improving Walmart’s operational efficiency. This advancement is expected to enhance the customer experience by allowing for in-store pickups of online orders that are prepared and delivered from the distribution center, thereby reducing the reliance on manual in-store order fulfillment.

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Symbotic (SYM) Company Description:

SVF Investment Corp 3 is a blank check company.