Update shared on27 Aug 2025
Fair value Increased 2.53%Buoyed by better-than-expected fiscal Q4 results, strong 2026 guidance, and anticipated long-term catalysts from the One Big Beautiful Bill initiative, analyst confidence in OSI Systems has increased, resulting in the consensus price target rising from $243.33 to $249.50.
Analyst Commentary
- Bullish analysts cited better than expected fiscal Q4 results as a primary driver for higher price targets.
- 2026 company guidance outperformed analyst consensus estimates, supporting a positive outlook.
- Bullish analysts highlighted significant upcoming catalysts expected from the One Big Beautiful Bill initiative in fiscal 2027 and beyond.
- Recent price target increases reflect growing confidence in the company’s operational execution.
- Analysts continue to view the shares as attractive, maintaining Outperform/Buy ratings.
What's in the News
- OSI Systems issued revenue guidance for fiscal year 2026, expecting revenues between $1.805 billion and $1.850 billion.
- The Security division secured a $34 million contract from an international customer to deploy high-throughput truck, cargo, and passenger vehicle inspection systems, with civil works, training, and multi-year support.
- The Security division received a $17 million international order for cargo and vehicle inspection systems, including installation, training, and multi-year maintenance support.
- OSI Systems was dropped from several Russell Value-based and small/mid-cap indices, including the Russell 2000, 2500, 3000, and related value indices.
- Several additional international contracts were secured by the Security division, including $10 million, $14 million, and $11 million orders for advanced inspection and radiation monitoring systems; a $47 million order was also received for maintenance of inspection systems in the U.S.
Valuation Changes
Summary of Valuation Changes for OSI Systems
- The Consensus Analyst Price Target has risen slightly from $243.33 to $249.50.
- The Consensus Revenue Growth forecasts for OSI Systems has significantly risen from 5.1% per annum to 5.6% per annum.
- The Net Profit Margin for OSI Systems has fallen slightly from 10.18% to 9.91%.
Disclaimer
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