TD Cowen analyst Josh Jennings reiterated a Buy rating on Outset Medical yesterday and set a price target of $25.00.
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Josh Jennings’s rating is based on Outset Medical’s strong financial performance and promising future outlook. The company reported a notable 15% year-over-year increase in second-quarter revenue, surpassing market expectations by $2 million. This growth was driven by increased console placements and improved gross margins, indicating effective cost management and operational efficiency.
Furthermore, Outset Medical raised its full-year revenue guidance, reflecting confidence in its ongoing momentum. The company aims to achieve a gross margin above 40% by the end of the year and is on track to reach a 50% gross margin milestone in the long term. Additionally, the company has significantly reduced its cash usage, demonstrating progress toward achieving cash flow breakeven. These factors collectively contribute to Jennings’s Buy rating for the stock.
According to TipRanks, Jennings is a 3-star analyst with an average return of 1.6% and a 48.49% success rate. Jennings covers the Healthcare sector, focusing on stocks such as TransMedics Group, Boston Scientific, and Ceribell, Inc..