TD Cowen analyst Josh Jennings reiterated a Buy rating on Outset Medical (OM – Research Report) today and set a price target of $9.00.
Josh Jennings has given his Buy rating for Outset Medical due to a combination of factors. The key point of reference was the company’s recent 3Q revenue report, which was in line with the preliminary estimates announced in October. This lends credence to the company’s performance consistency. Additionally, the company reiterated its revenue and gross margin estimates for 2023 which again speaks to its expectation of stable growth. Furthermore, it provided a detailed outlook for 2024 and beyond, which could potentially alleviate investor anxieties regarding the future.
Another reason behind Jennings’ rating is the company’s reaffirmation of its most recent revenue guidance during last week’s call. Despite lowering its 2023 revenue guidance in October, the company stood by these revised figures in its latest update, which suggests a level of confidence in its financial forecasting. Besides, the company also reiterated its gross margin guidance for 2023, which has remained unchanged since its first quarter announcement, hence demonstrating a steady profit-making potential. The company’s plans to reduce cash consumption in 2023 compared to 2022 and end the year with a substantial cash balance further contributes to its financial stability. Lastly, their plans for console placements indicate a clear strategy for market expansion, reinforcing the potential for increased recurring revenue.
Jennings covers the Healthcare sector, focusing on stocks such as Boston Scientific, Abbott Labs, and Alphatec Holdings. According to TipRanks, Jennings has an average return of 0.9% and a 47.63% success rate on recommended stocks.
In another report released on November 8, RBC Capital also maintained a Buy rating on the stock with a $14.00 price target.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Outset Medical (OM) Company Description:
Outset Medical Inc is a medical technology company. The company has developed a machine, Tablo, which reduces the cost and complexity of dialysis.
Read More on OM:
- Outset Medical backs FY23 revenue view roughly $130M, consensus $132M
- Outset Medical reports Q3 adjusted EPS (71c), consensus (67c)
- Netflix downgraded, Applied Materials upgraded: Wall Street’s top analyst calls
- Outset Medical downgraded to Underperform from Buy at BofA
- Outset Medical price target lowered to $17 from $29 at RBC Capital
