BTIG maintains buy rating on Outset Medical stock after CFO change

Published 04/06/2025, 11:28
BTIG maintains buy rating on Outset Medical stock after CFO change

On Wednesday, Outset Medical (TASE:BLWV) Inc. (NASDAQ: OM) announced a change in its executive team, appointing Renee Gaeta as the new Chief Financial Officer. Gaeta replaces Nabeel Ahmed, who is leaving the company to explore other opportunities. Gaeta will also oversee the company’s Information Technology and Human Resources divisions. Previously, she served as CFO for Shockwave Medical (NASDAQ:SWAV) until its acquisition by Johnson & Johnson.

BTIG analysts reiterated a Buy rating for Outset Medical stock, maintaining a price target of $45.00, significantly above the current trading price. They expressed confidence in Gaeta’s abilities, noting her past roles, including her time at Establishment Labs. The analysts believe she will be a valuable addition to Outset Medical’s leadership team. InvestingPro data reveals the stock has shown strong momentum, with a 16.58% return year-to-date, though it currently appears overvalued based on Fair Value calculations.

In addition to the leadership change, Outset Medical reaffirmed its financial expectations for the full year 2025. The company forecasts revenue between $115 million and $125 million, with adjusted gross margins anticipated to be in the high 30% range.

BTIG analysts stated that their estimates for Outset Medical remain unchanged following the company’s recent announcements. The firm continues to support its Buy rating for the stock, citing confidence in the company’s strategic direction and leadership.

Outset Medical shares are closely watched by investors, with the company’s recent announcements likely to impact market perceptions and stock performance.

In other recent news, Outset Medical reported its first-quarter 2025 earnings, revealing a revenue increase of 5.6% year-over-year to $29.8 million, surpassing both Oppenheimer’s and consensus estimates. Despite a significant earnings per share (EPS) loss of $3.24, which was much larger than the anticipated loss of $0.30, the company showed improvements in operational efficiency, with a 49% betterment in non-GAAP operating loss and a notable increase in gross margin to 37.6%. Outset Medical has reaffirmed its 2025 revenue guidance, projecting between $115 million and $125 million, aligning with analyst expectations. The company also announced the appointment of Renee Gaeta as its new Chief Financial Officer, bringing extensive experience from her previous roles, including CFO at Shockwave Medical. Additionally, Kevin O’Boyle joined Outset Medical’s Board of Directors, taking over as chair of the Audit Committee. On the analyst front, RBC Capital Markets raised its price target for Outset Medical to $21.00 from $14.00, maintaining a Sector Perform rating. Oppenheimer also retained its Perform rating, emphasizing the need for the company to demonstrate consistent results. These developments highlight Outset Medical’s ongoing efforts to strengthen its financial position and market presence.

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