Will Zebra Technologies stock go to $312? 1 Wall Street analyst thinks so.

data management expert zebra technology (collect -2.92%) It reported solid fourth-quarter results on Thursday, inspiring several optimistic analyst reports. Among them, Baird analyst Richard Eastman raised Zebra’s target stock price from $292 to $312 per share based on persuasive analysis.

What this analyst expects from Zebra

Eastman explained his repeated “outperform” ratings on Zebra stock with insightful analysis of Zebra’s most important target markets. Retail was the first to suffer the 2021 and 2022 recession, and those same industries are poised for a strong recovery.

On the earnings call, management mentioned a “green shoot” for services and infrastructure spending for retail customers, but still prefers to maintain conservative guidance.

“We feel good about the small increase in demand as demand progresses throughout the year, but we want to feel a little more confident as we see more orders, more projects and more deployments across our end customers,” CEO Bill Burns said. .

It’s still an optimistic outlook. Baird analysts expect Zebra’s financial results to blossom as a result.

That’s an astute analysis, Mr. Eastman!

Reaching Baird’s target of $312 would represent a 13% increase from Zebra’s current stock price. It will also be just short of its 52-week high, more than 50% below its all-time high set in December 2021. Therefore, the price target appears realistic from a historical perspective, and Zebra’s stock is trading at a cheap price. It is valued at 3.1 times today’s sales.

Eastman’s retail-based analysis of Zebra’s near-term outlook strikes me as reasonable and thoroughly insightful. I agree with his bullish assessment of Zebra stock, and there is additional value in the company’s portfolio of artificial intelligence (AI) tools. From my perspective, this stock looks like an undervalued innovator.