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Investing.com - Oppenheimer raised its price target on OSI Systems (NASDAQ:OSIS) to $270.00 from $260.00 on Friday, while maintaining an Outperform rating on the security technology company’s stock. The stock, currently trading at $228.70 and near its 52-week high of $241.64, has delivered an impressive 30.14% return year-to-date according to InvestingPro data.
The firm highlighted OSI’s strong finish to fiscal year 2024, particularly noting robust performance in the company’s Security and O&M segments, despite weakness in the Healthcare division. Security sales grew 7%, with a 9% contribution (approximately $30 million) coming from the company’s RF communications and surveillance technology acquisition.
OSI’s Security segment achieved record year-end backlog of $1.5 billion, having absorbed revenue recognition from the majority of approximately $800 million in Mexico contracts primarily executed between late FY23 and FY25. "Core" Security sales, excluding both the acquisition and Mexico business, increased 50% year-over-year.
The company overcame a 31% year-over-year drag (approximately $40 million in FY4Q25 sales versus $145 million in FY4Q24) related to comparisons against peak execution of Mexico project wins in the previous fiscal year. This shortfall was offset by improved breadth globally and across served markets.
Oppenheimer noted OSI’s guidance came in above consensus, with the company citing "high visibility...not just in FY26, but years beyond too," though it observed that fourth-quarter free cash flow was soft due to timing issues. InvestingPro analysis shows OSI maintains a strong financial health score of 2.54 (rated as GOOD), with liquid assets exceeding short-term obligations. For deeper insights into OSI’s financial health and growth prospects, including additional ProTips and comprehensive analysis, check out the full Pro Research Report available on InvestingPro.
In other recent news, OSI Systems Inc. reported its fourth-quarter fiscal 2025 earnings, which did not meet analysts’ expectations. The company announced earnings per share of $2.84, falling short of the forecasted $3.19, resulting in a 10.97% negative surprise. Additionally, revenue came in at $480.91 million, missing the expected $496.46 million. These results are significant for investors as they reflect the company’s current financial performance. The earnings miss highlights challenges OSI Systems may be facing. Investors will be closely monitoring any strategic changes or future guidance from the company. These developments are crucial for stakeholders considering their investment decisions.
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