Varex Imaging initiated with a Buy at B. Riley

B. Riley initiated coverage of Varex Imaging with a Buy rating and $21 price target. Varex is a leading designer and manufacturer of X-ray components for use in medical diagnostic imaging, security inspection systems, and other industrial applications, the analyst tells investors in a research note. The firm says the company’s competitive advantage is its expertise in designing, building, and assembling highly complex components that are able to withstand extreme conditions. It believes tailwinds in 2024, particularly China and destocking trends, will become tailwinds by 2025.