Oppenheimer lowers Varex stock price target to $18 on mixed outlook

Investing.com - Oppenheimer has lowered its price target on Varex Imaging Corporation (NASDAQ:VREX) to $18.00 from $23.00 while maintaining an Outperform rating on the stock. The new target represents a slight discount to the current share price of $19.71, with the stock trading near its 52-week low of $18.54 after falling over 63% year-to-date.

The price target reduction follows Varex’s fiscal fourth quarter 2025 revenue of $229 million, which exceeded both Oppenheimer’s estimate of $221 million and the consensus estimate of $219 million. The results came in at the high end of the company’s guidance range of $210-230 million. Despite this revenue outperformance, InvestingPro data shows the company has not been profitable over the last twelve months, with a diluted EPS of -$0.34.

Varex provided fiscal first quarter 2026 revenue guidance of $200-215 million, which brackets Oppenheimer’s estimate of $207 million and the consensus estimate of $206 million. The company also reported it has initiated radiographic detector production from its new India facility, while its CT tube factory is expected to be operational in 9-12 months.

Oppenheimer noted that a growing industrial mix should help yield incremental gross margin gains for Varex. The firm also pointed out that Varex is 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. The firm also highlighted potential opportunities in cold cathode technology and photon counting detectors.

In other recent news, Vertex Inc. reported third-quarter results with non-GAAP earnings per share of $0.17, slightly surpassing the consensus estimate of $0.16. The company achieved revenue of $192.1 million, marginally exceeding analyst expectations of $192.0 million. Vertex has also launched its Configuration Agent for Microsoft Dynamics 365 on the Microsoft Marketplace, providing businesses with automated tax configuration capabilities. This solution is designed to help maintain tax compliance through automatic detection and configuration adjustments.

Meanwhile, several analyst firms have adjusted their price targets for Vertex. DA Davidson lowered its target to $23.00 from $29.00, citing a reduced fiscal year 2025 outlook. Stifel also reduced its target to $23.00 from $28.00 due to growth concerns, while Needham cut its target to $30.00 from $40.00, maintaining a Buy rating. Citizens adjusted its price target to $37.00 from $50.00, following what it termed mixed third-quarter results. These developments reflect varying analyst perspectives on Vertex’s future performance.

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