B.Riley FBR Believes OSI Systems (NASDAQ: OSIS) Still Has Room to Grow

By Jason Carr

B.Riley FBR analyst Josh Nichols maintained a Buy rating on OSI Systems (OSISResearch Report) today and set a price target of $113. The company’s shares closed yesterday at $90.13, close to its 52-week high of $91.35.

Nichols said:

“Buy-rated OSI Systems (OSIS, $113 PT) reported F3Q19 (Mar) results with record revenue of $304M, EBITDA of $50M, and pro forma EPS of $1.17, handily outpacing our revenue/EBITDA/ pro forma estimates of $283M/$44M/$0.90 and consensus $289M/$45M/$0.95, respectively. Despite some bookings being pushed out a quarter or two, the Security Division delivered record revenues of $193M, up 14% Y/Y , driven by robust sales in cargo equipment, vehicle inspection, and Real Time Tomography (RTT) product lines. The checked baggage conversion cycle in Europe is progressing as planned, and management estimates approximately 30%-35% of the contract has now been bought. In this regard, we believe there will be significant activity in the coming 12 months, providing a favorable backdrop for growth through FY20.”

According to TipRanks.com, Nichols is a 4-star analyst with an average return of 10.8% and a 42.6% success rate. Nichols covers the Consumer Goods sector, focusing on stocks such as Adesto Technologies Corp, Pointer Telocation Ltd, and Immersion Corp.

The word on The Street in general, suggests a Moderate Buy analyst consensus rating for OSI Systems with a $113 average price target.

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The company has a one-year high of $91.35 and a one-year low of $65.13. Currently, OSI Systems has an average volume of 119.6K.

Based on the recent corporate insider activity of 62 insiders, corporate insider sentiment is negative on the stock.

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OSI Systems, Inc. is an integrated designer and manufacturer of specialized electronic systems and components for critical applications. Its services support a range of markets, including homeland security, healthcare, defense and aerospace. It operates through the following segments: Security, Healthcare, Optoelectronics and Manufacturing, and Corporate.