Benchmark Raises Price Target on OSI Systems (OSIS) Following Talks with Management
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Price: $206.73 -5.21%
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
7 Buy, 4 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Benchmark is reiterating its Buy rating on shares of OSI Systems (NASDAQ: OSIS) while raising its price target from $48 to $54.
Following talks with the company's CFO, Alan Edrick, the firm is more confident in its outlook. Management noted its second fee per scan site in Puerto Rico is on schedule to be operational by year-end while its third one should be operational by February. The firm forecasts Puerto Rico could account for $15-$20 million in additional revenue.
The company still anticipates on receiving TSA and EU certification for its Real Time Tomography checked baggage inspection system. Benchmark estimates OSIS will receive orders in the 2,000 range to replace airport Explosive Detection Systems in the U.S.
OSIS also announced plans to launch a new anesthesia product in the U.S. and Europe. Management believes the product will receive FDA approval by June of 2012.
An analyst at Benchmark comments, "We continue to like the stock in the coming year and over the long-term for three reasons; earnings upside in FY12 from a strong backlog, long-term double-digit security growth, new products and GPOs could driver better than expected healthcare growth."
For FY12 and FY13, the firm is forecasting EPS of $2.27 and $2.71. Revenue for FY12 and FY13 is estimated to be $746 million and $807 million.
For an analyst ratings summary and ratings history on OSI Systems click here. For more ratings news on OSI Systems click here.
Shares of OSI Systems closed at $45.08 yesterday.
Following talks with the company's CFO, Alan Edrick, the firm is more confident in its outlook. Management noted its second fee per scan site in Puerto Rico is on schedule to be operational by year-end while its third one should be operational by February. The firm forecasts Puerto Rico could account for $15-$20 million in additional revenue.
The company still anticipates on receiving TSA and EU certification for its Real Time Tomography checked baggage inspection system. Benchmark estimates OSIS will receive orders in the 2,000 range to replace airport Explosive Detection Systems in the U.S.
OSIS also announced plans to launch a new anesthesia product in the U.S. and Europe. Management believes the product will receive FDA approval by June of 2012.
An analyst at Benchmark comments, "We continue to like the stock in the coming year and over the long-term for three reasons; earnings upside in FY12 from a strong backlog, long-term double-digit security growth, new products and GPOs could driver better than expected healthcare growth."
For FY12 and FY13, the firm is forecasting EPS of $2.27 and $2.71. Revenue for FY12 and FY13 is estimated to be $746 million and $807 million.
For an analyst ratings summary and ratings history on OSI Systems click here. For more ratings news on OSI Systems click here.
Shares of OSI Systems closed at $45.08 yesterday.
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