Benchmark Reiterates a 'Buy' on OSI Systems (OSIS); Expect Strong Results, But Adjusting Estimates to Reflect Mexico Costs

Benchmark reiterates a 'Buy' on OSI Systems (NASDAQ: OSIS) price target of $72.00.

Analyst, Josephine Millward, said, "We are lowering our Q4 GAAP EPS estimate from $0.86 to $0.74 to reflect faster-than-expected start-up costs (approximately $0.12) related to ramping in Mexico. We are also lowering our FY13 GAAP EPS estimate from $2.90 to $2.63; however, we maintain our Q4 pro forma EPS of $0.86 and our FY13 pro forma EPS of $2.90."

"At $63.16, the stock is up more than 30% YTD and is trading at 10.7x our FY13 EV/EBITDA. We continue to like OSIS based on its strong visibility for double-digit earnings growth and upside from multiple opportunities in security and healthcare."

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 $63.16 yesterday.

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