Truist Maintains Hold on Zebra Technologies (ZBRA) While Lowering PT Amid Scrutiny of 2026 Demand

Zebra Technologies Corporation (NASDAQ:ZBRA) is one of the best NASDAQ stocks to buy in 2026. On December 18, Truist analyst Jamie Cook lowered the firm’s price target on Zebra Technologies to $291 from $331 with a Hold rating. In a 2026 sector preview, the firm maintained a preference for Transmission, Distribution, and Power Generation due to data center and AI demand, though it warned that investors will scrutinize backlog growth for signs of peaking demand.

The construction sector is viewed as a bright spot, supported by the end of inventory destocking and Deere’s forecast of 10% growth in its Construction & Forestry division. Additionally, while North American truck orders are currently at a cyclical low, the firm expects a recovery throughout 2026 as customers pre-buy vehicles ahead of the EPA 2027 regulatory changes.

In Q3 2025, Zebra Technologies Corporation (NASDAQ:ZBRA) reported a 5% year-over-year revenue increase to $1.3 billion. The company achieved a non-GAAP diluted EPS of $3.88, which was an 11% increase that exceeded the high end of its previous outlook. Growth was uneven across Zebra’s business segments and geographies. The Asset Intelligence & Tracking segment surged by 11%, driven by strong demand for RFID and printing technologies. In contrast, the Enterprise Visibility & Mobility segment grew by a modest 2%, as double-digit gains in mobile computing were partially offset by a decline in data capture due to a difficult year-over-year comparison.

Looking toward the end of the year, Zebra Technologies Corporation (NASDAQ:ZBRA) forecasts sales growth between 8% and 11% with a non-GAAP diluted EPS of $4.20 to $4.40. For the full year 2025, the company expects approximately 8% sales growth and an adjusted EPS of roughly $15.80, which would mark a 17% increase over the prior year.

Zebra Technologies Corporation (NASDAQ:ZBRA), together with its subsidiaries, provides enterprise asset intelligence solutions in the automatic identification and data capture solutions industry worldwide. It has two segments: Asset Intelligence & Tracking, and Enterprise Visibility & Mobility.

While we acknowledge the potential of ZBRA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.