Varex Imaging stock price target raised to $16 from $12 at B.Riley

Investing.com - B.Riley raised its price target on Varex Imaging (NASDAQ:VREX) to $16.00 from $12.00 on Friday, while maintaining a Buy rating on the stock following the company’s strong fiscal third-quarter 2025 performance. The stock, currently trading at $9.08, has shown significant momentum with an 8.77% gain over the past week, according to InvestingPro data.

The medical device manufacturer reported results that exceeded expectations for both revenue and earnings, with notable margin expansion during the quarter, according to B.Riley’s analysis. The company maintains strong liquidity with a current ratio of 4.05, while trading at attractive multiples with a price-to-book ratio of 0.59.

The firm noted that orders from China resumed in the latter half of the quarter after a temporary pause due to trade tensions, which also resulted in a suspension of anti-dumping investigations.

Varex provided fiscal fourth-quarter 2025 guidance above consensus expectations, suggesting favorable momentum under current tariff conditions, though B.Riley cautioned that potential rising trade tensions remain a concern.

The price target increase reflects "cautious optimism regarding tariff headwinds" and is based on an 8.0x EV/AEBITDA multiple applied to 2025 estimated AEBITDA, with considerations for $153 million in cash, $368 million in debt, and 42 million diluted shares outstanding. The company’s current enterprise value to EBITDA ratio stands at 6.81x, with a market capitalization of approximately $378 million.

In other recent news, Varex Imaging Corporation reported impressive Q3 2025 results, with earnings per share (EPS) of $0.18, significantly exceeding the forecast of $0.02. This represents an 800% surprise in EPS. The company also reported revenue of $203 million, slightly above the expected $194.78 million, despite a 3% decline compared to the previous year. Varex Imaging’s strong performance is attributed to its strategic initiatives and technological advancements. The earnings announcement led to a positive market response. These developments highlight the company’s ability to outperform expectations.

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