Symbotic Inc (NASDAQ:SYM) ended the fiscal year on a strong note, with upbeat fourth-quarter results, and announced its first customer in the health care vertical, according to Needham.

The Symbotic Analyst: Analyst James Ricchiuti reiterated a Buy rating and raised the price target from $57 to $70.

The Symbotic Thesis: The company's fiscal fourth quarter revenues grew 10% year-on-year to $618 million, beating consensus of $604 million, Ricchiuti said in the note.

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Symbotic's adjusted EBITDA came in at $49.4 million, with adjusted gross margins expanding to 22.1% and topping the consensus of 20.8%, driven by strong Systems margins, he added.

"SYM’s new storage structure should provide further tailwinds for margins while opening up new market opportunities with improved density and faster installation times," the analyst wrote.

Symbotic added Medline as its first customer in the health care market, he further stated.

Management guided fiscal first-quarter revenues and adjusted EBITDA of $610 million-$630 million and $49 million-$53 million, with the midpoints coming in above consensus of $611.5 million and $50.8 million, respectively.

SYM Price Action: Symbotic shares were up 39.12% at $77.15 at the time of publication on Tuesday, according to Benzinga Pro data.

Symbotic operates in the machinery industry, with a market cap of $8.59 billion, positioning it as a significant player in the industrials sector. Its 52-week range of $16.31 to $84.00 indicates a volatile year, with the stock currently trading near its high, reflecting strong investor interest in automation and supply chain solutions amid global economic shifts.

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