Analyst Josh Jennings of TD Cowen maintained a Buy rating on Outset Medical (OM – Research Report), retaining the price target of $3.00.
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Josh Jennings’s rating is based on Outset Medical’s strategic inventory management and production capabilities that mitigate potential tariff impacts. Despite manufacturing in Mexico and sourcing some components from China, the company is well-prepared with significant finished goods inventory in the US for its Tablo consoles and treatment cartridges. Additionally, Outset Medical can ramp up cartridge production in Thailand, reducing its reliance on Mexican manufacturing if necessary.
Jennings notes that Outset Medical’s proactive approach to tracking tariff developments and its potential to benefit from exemptions on medically necessary items contribute to a positive outlook. The company’s ability to navigate these challenges effectively suggests strong operational resilience, justifying the Buy rating.
In another report released on January 22, BTIG also maintained a Buy rating on the stock with a $3.00 price target.