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Symbotic Stock Cut to Sell at UBS. Why Walmart Can’t Be the Only Big Customer.

1. UBS downgrades Symbotic to Sell, raises price target to $35. 2. Walmart is Symbotic's flagship customer, funding new developments. 3. UBS sees slower sales growth of 28% vs. 50% market expectations. 4. Symbotic's order backlog growth is stagnant since late 2023. 5. 31% of Symbotic shares were shorted, indicating market skepticism.

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FAQ

Why Neutral?

While Symbotic’s downgrade affects investor sentiments, Walmart's ongoing partnership remains strong.

How important is it?

The article discusses the reliance of Symbotic on Walmart, indicating WMT's indirect exposure to Symbotic's performance.

Why Short Term?

The immediate market reaction to Symbotic's downgrade may impact WMT short-term, though fundamentals remain intact.

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