Analyst Mariana Perez Mora from Bank of America Securities reiterated a Buy rating on OSI Systems and increased the price target to $315.00 from $265.00.
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Mariana Perez Mora’s rating is based on several strategic factors that position OSI Systems for growth. The company is poised to benefit from increased global security spending, particularly due to the emphasis on securing U.S. borders under the Trump Administration. This environment enhances opportunities in cargo and vehicle inspection, as well as advanced RF detection technology, which are expected to offset any revenue challenges related to Mexico.
Additionally, OSI Systems is expanding its service offerings, which are anticipated to drive profitable growth in the near and medium term. The company’s service portfolio is expected to generate strong recurring revenue at higher margins, especially as it leverages its customer base and infrastructure to support the RF product line. The recent RF acquisition has shown promising growth, with significant product orders and a strong book-to-bill ratio, indicating sustained momentum. Despite concerns about revenue declines in Mexico, OSI Systems’ performance in other segments and its alignment with border protection priorities suggest a positive outlook, further justifying the Buy rating.
In another report released on November 1, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $317.00 price target.