OSI Systems initiated with a Neutral at JPMorgan

JPMorgan initiated coverage of OSI Systems (OSIS) with a Neutral rating and $225 price target representing 5% upside. The firm sees growth, margin expansion, and cash generation ahead for OSI, with the Security business being the main earnings driver. While OSI is on a good path, the stock is up 28% year-to-date, making the valuation “nicely above the historical average, so we are inclined to be patient,” the analyst tells investors in a research note.