Leerink Partners analyst Michael Cherny has reiterated their neutral stance on OMI stock, giving a Hold rating yesterday.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Michael Cherny has given his Hold rating due to a combination of factors including the recent financial announcements and market conditions affecting Owens & Minor. The company’s stock has shown a positive start to the year relative to the broader market, assisted by its substantial onshore manufacturing presence, which provides some insulation against tariffs compared to its peers. However, the recent announcement regarding adjusted EBITDA underperformance and softer revenues raises concerns about underlying profit margins, particularly ahead of the Rotech acquisition.
The Rotech acquisition, although potentially beneficial for Owens & Minor’s Patient Direct business, comes with complexities such as a non-cash goodwill impairment charge related to Apria. This development, coupled with macroeconomic concerns, has led to a conservative outlook. As a result, Cherny is maintaining a Market Perform rating while slightly lowering the price target from $14.00 to $13.50, reflecting changes in the company’s balance sheet and market multiples.
Cherny covers the Healthcare sector, focusing on stocks such as Walgreens Boots Alliance, GoodRx Holdings, and CVS Health. According to TipRanks, Cherny has an average return of 3.6% and a 53.13% success rate on recommended stocks.
In another report released yesterday, Robert W. Baird also maintained a Hold rating on the stock with a $14.00 price target.