10 Stocks with Biggest Upside Potential According to Hedge Funds

6) Symbotic Inc. (NASDAQ:SYM)

Average Upside Potential: 69.88%

Number of Hedge Fund Holders: 29

Symbotic Inc. (NASDAQ:SYM) is an automation technology company, which is engaged in developing technologies to improve operating efficiencies in modern warehouses.

Market experts opine that Symbotic Inc. (NASDAQ:SYM)’s stock is well-placed for strong growth as a result of the plans to internalize some operations to improve margins. It is focused on in-sourcing its Engineering Procurement Construction (EPC) process so that costs can be reduced and system integration control can be enhanced. Symbotic Inc. (NASDAQ:SYM) remains optimistic about reaccelerating revenue growth in Q1 2025.

The company has locked in steel prices and expects a positive future impact on margins. Symbotic Inc. (NASDAQ:SYM)’s technology reduces labor and inventory costs and supports an unlimited number of customer SKUs. This results in improving efficiency and flexibility. The company wrapped up 3 system deployments and started 5 new ones, resulting in a total of 21 operational systems. Symbotic Inc. (NASDAQ:SYM) anticipates revenue growth to pick up in Q1 2025, with system gross margins returning to historical levels.

The company has been making progress on a new minibot and the deployment of the first system for GreenBox. This exhibits strong future growth prospects. For Q4 2024, Symbotic Inc. (NASDAQ:SYM) expects to achieve revenue in the range of $455 million – $475 million and projects an adjusted EBITDA of $28 million – $32 million.

Deutsche Bank Aktiengesellschaft upped its target price on shares of Symbotic Inc. (NASDAQ:SYM) from $58.00 to $59.00, giving a “Buy” rating on 30th July. As per Insider Monkey’s Q2 2024 data, 29 hedge funds were long Symbotic Inc. (NASDAQ:SYM).