OSI Systems Seen Positioned for Continued Organic Growth, Oppenheimer Says

MT Newswires Live07-08

OSI Systems (OSIS) remains positioned for sustained organic revenue and earnings growth, supported by a record backlog and a strong security screening pipeline, Oppenheimer said in a Wednesday note.

The firm said the company's security backlog ended fiscal Q3 at a record $1.9 billion, marking 14 consecutive quarters of positive organic revenue.

Oppenheimer expects robust free cash flow in fiscal Q4, helped by additional collections from a large Mexico project after the company received $74 million early in the quarter.

The firm also expects the security business to benefit from the $235 million Golden Dome award, resumed US government order activity and potential US Customs and Border Protection contract awards in the coming months.

Oppenheimer maintained its outperform rating on OSI Systems and its $320 price target.

Price: 215.53, Change: -3.19, Percent Change: -1.46

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