Zebra Technologies Automates Frontline Workers' Workflows - New Generative AI Capabilities for Handheld Computers!

Zebra Technologies (ZBRA) delivers a comprehensive portfolio of RFID devices, barcode scanners, label printers, smart sensors and cameras, as well as cloud solutions and mobile autonomous robots for workflow automation. According to Barclays analysts, Zebra is well positioned with long-term drivers in the areas of automatic identification and data capture (AIDC) and enterprise asset intelligence (EIA). Long-term customer relationships provide a competitive advantage and the number of mobile computers installed has increased by 25% since the outbreak of the pandemic - by 2023. Today, 80 % of Fortune 500 companies in the retail, e-commerce, healthcare, manufacturing, transportation, logistics and distribution sectors are already being served. After a period of high inventory levels, improvement is in sight in the second half of the year, with a product renewal cycle set to accelerate in 2025.

New generative AI functions are to be presented at Google Cloud Next on April 11. Specifically, the Android-based handheld computers will be equipped with processors from Qualcomm for on-device AI functions as well as Gemini and open source Gemma models from Google for generative AI. The aim is to usher in a new era of customer and employee interaction with companies and brands. Frontline employees receive a constantly available AI assistant with chat functions in order to use them in a more versatile way and compensate for staff shortages. A European supermarket chain has already tested generative AI with Zebra mobile computers by feeding the model with its entire library of standard operating procedures (SOP).

2024 is likely to be a transition year, with the most recent quarter showing initial sequential improvements with increased order activity, but a broad market recovery is not yet apparent. Wolfe Research upgraded the stock from "Peer Perform" to "Outperform" on April 8 with a price target of $337 and expects growth to accelerate with valuation expansion over the next 12 to 18 months. After $4.66 billion this year, revenues are expected to rise again to $5.07 billion in 2025. Net profit is already expected to almost double to $11.10 per share and improve to $14 per share in the following year. The 52-week high is approaching again.

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