Outset Medical (OM – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Josh Jennings from TD Cowen maintained a Buy rating on the stock and has a $15.00 price target.
Josh Jennings has given his Buy rating due to a combination of factors including the recent adjustments to Outset Medical’s share count and the application of an EV-to-sales multiple. Despite the changes in share count, which resulted from the conversion of preferred shares and a reverse stock split, Jennings maintains confidence in the company’s revenue projections.
The new price target of $15 reflects these adjustments and is based on an EV-to-sales multiple of 2.1, which Jennings considers suitable given the broader market trends affecting small-cap stock valuations. This approach suggests a positive outlook for Outset Medical’s financial performance in the coming years.
In another report released on March 25, BTIG also maintained a Buy rating on the stock with a $45.00 price target.