Symbotic downgraded to Sector Weight from Overweight at KeyBanc

KeyBanc analyst Ken Newman downgraded Symbotic (SYM) to Sector Weight from Overweight following the company’s announcement that it found additional accounting errors in its revenue recognition related to cost overruns that will not be billable on certain deployments that led it to lower its FY24 EBITDA by $30M-$40M and fiscal Q1 revenue guidance to $480M-$500M from $495M-$515M. While the complete picture of the impact won’t be available until the 10-K is officially filed in the next two weeks, the firm says it gets “the sense that this restatement is purely an accounting issue and not indicative of a change in customer behavior or order activity.” However, it thinks investor sentiment is likely to remain cautious until the company can rebuild credibility around its internal accounting processes.