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Investing.com - Oppenheimer has lowered its price target on Varex Imaging (NASDAQ:VREX) to $18.00 from $23.00 while maintaining an Outperform rating on the medical imaging company’s stock. Despite the reduced target, this still represents approximately 35% upside from the current price of $11.86, according to InvestingPro data, which also indicates the stock is trading below its Fair Value.
The price target reduction follows Varex’s fourth-quarter fiscal 2025 revenue report of $229 million, which exceeded both Oppenheimer’s estimate of $221 million and the consensus estimate of $219 million. The reported revenue also landed at the high end of the company’s guidance range of $210-230 million.
Varex has provided first-quarter fiscal 2026 revenue guidance of $200-215 million, which aligns with analyst expectations of approximately $207 million. The company has also initiated radiographic detector production from its new facility in India, while its CT tube factory is expected to become operational in approximately 12 months.
Oppenheimer noted that Varex’s growing industrial mix should help yield incremental gross margin gains. The firm also mentioned that Varex has been able to pass through tariffs to some customers, though the extent remains unclear.
Despite near-term pressures, Oppenheimer considers Varex a "deep-value name" with "best in-class X-ray core competency" and a "sticky" end-user base, along with potential opportunities in cold cathode technology and photon counting detectors. This value assessment is supported by InvestingPro data showing a strong free cash flow yield of 7% and a healthy current ratio of 3.43, indicating liquid assets comfortably exceed short-term obligations. While not profitable over the last twelve months, analysts predict the company will return to profitability this fiscal year with an EPS forecast of $0.74. For deeper insights and additional ProTips on Varex Imaging, including its comprehensive Pro Research Report, visit InvestingPro.
In other recent news, Varex Imaging Corp reported its fourth-quarter earnings for 2025, exceeding analysts’ expectations. The company achieved earnings per share (EPS) of $0.37, which was significantly higher than the projected $0.17. Additionally, Varex Imaging’s revenue surpassed forecasts, reaching $229 million, while analysts had anticipated $219.26 million. These results highlight the company’s strong financial performance in the recent quarter. Following the earnings announcement, the company’s stock saw positive movement in after-hours trading. The better-than-expected earnings and revenue figures have drawn attention from investors and analysts alike. These developments are part of the latest updates concerning Varex Imaging.
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