Symbotic Shares Slide After Goldman Sachs Issues Sell Rating

Symbotic (SYM) dropped 20% on Tuesday after Goldman Sachs downgraded the warehouse automation company to Sell from Neutral, citing concerns that the stock’s exceptional year-to-date rally has outpaced its fundamental cash-flow outlook.

Goldman analyst Mark Delaney said SYM’s valuation no longer reflects a likely slowdown in cash-flow growth, even though investor enthusiasm for automation and robotics has boosted the stock in 2024–2025.

Goldman’s Concerns: Slowing Cash Flow & Limited New Customer Momentum

Strong Rally Not Aligned With Fundamentals

Delaney argued that SYM’s surge has been driven more by broad market excitement for automation than actual incremental business momentum from new customers.

Dependence on Walmart Highlighted

While Symbotic’s warehouse automation systems continue to be well-received by Walmart, Goldman noted:

Bookings from independent (non-Walmart) customers have been limited in recent years
Growth outside its flagship partner has not accelerated as expected
Cash-flow growth is likely to slow, making current valuation difficult to justify

Price Target Implies Significant Downside

Goldman set a $47 price target, implying about 45% downside from the previous close.

Market Reaction

Following the downgrade, Symbotic shares fell sharply as investors reassessed expectations for near-term customer expansion and cash-flow growth.