Oppenheimer Has Lowered Expectations for OSI Systems (NASDAQ:OSIS) Stock Price

Key Points

• Oppenheimer cut OSI Systems’ price target from $320 to $300 while maintaining an “outperform” rating, implying about 37.6% upside from the reported $218.09 share price. The analyst consensus remains “Moderate Buy,” with an average target of $294.71.
• OSI Systems narrowly beat quarterly EPS expectations at $3.78 versus $3.77, but revenue of $484.1 million fell well short of the $529.7 million consensus. Fiscal 2027 adjusted EPS guidance of $11.13–$11.49 also came in below the $11.44 analyst estimate, raising execution concerns.
• Institutional ownership is substantial at 89.21%, with several investors recently increasing their stakes. The company also continues to benefit from a sizable backlog and recently received an $85 million U.S. Customs and Border Protection contract.

OSI Systems (NASDAQ:OSIS - Get Free Report) had its target price cut by analysts at Oppenheimer from $320.00 to $300.00 in a report issued on Friday,Benzinga reports. The firm currently has an "outperform" rating on the technology company's stock. Oppenheimer's price objective suggests a potential upside of 37.56% from the stock's current price.

Several other research analysts also recently commented on the company. Bank of America reduced their price objective on OSI Systems from $315.00 to $300.00 and set a "buy" rating on the stock in a report on Monday, July 20th. Roth Capital reiterated a "buy" rating and issued a $310.00 target price on shares of OSI Systems in a report on Tuesday, May 5th. Citigroup dropped their price target on OSI Systems from $345.00 to $279.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Finally, Weiss Ratings lowered OSI Systems from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Thursday, July 30th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, OSI Systems has an average rating of "Moderate Buy" and a consensus price target of $294.71.

OSI Systems Price Performance

OSI Systems stock opened at $218.09 on Friday. The company has a debt-to-equity ratio of 1.12, a current ratio of 3.25 and a quick ratio of 2.42. The stock has a market cap of $3.59 billion, a price-to-earnings ratio of 24.90, a price-to-earnings-growth ratio of 1.65 and a beta of 1.21. The firm has a 50-day moving average of $220.72 and a two-hundred day moving average of $247.30. OSI Systems has a 1 year low of $197.27 and a 1 year high of $311.72.

OSI Systems (NASDAQ:OSIS - Get Free Report) last issued its earnings results on Thursday, August 20th. The technology company reported $3.78 EPS for the quarter, topping analysts' consensus estimates of $3.77 by $0.01. OSI Systems had a net margin of 8.42% and a return on equity of 18.84%. The business had revenue of $484.06 million for the quarter, compared to analyst estimates of $529.72 million. During the same period last year, the company posted $2.84 earnings per share. The company's quarterly revenue was up .1% compared to the same quarter last year. OSI Systems has set its FY 2027 guidance at 11.130-11.490 EPS. On average, research analysts forecast that OSI Systems will post 10.41 earnings per share for the current year.

Hedge Funds Weigh In On OSI Systems

Institutional investors have recently bought and sold shares of the business. Royal Bank of Canada lifted its stake in shares of OSI Systems by 519.8% during the 1st quarter. Royal Bank of Canada now owns 10,257 shares of the technology company's stock worth $1,993,000 after purchasing an additional 8,602 shares during the last quarter. AQR Capital Management LLC grew its holdings in shares of OSI Systems by 64.2% during the first quarter. AQR Capital Management LLC now owns 11,656 shares of the technology company's stock valued at $2,265,000 after buying an additional 4,558 shares during the last quarter. Strs Ohio acquired a new stake in OSI Systems during the 1st quarter worth about $97,000. Amundi grew its stake in OSI Systems by 76,360.0% during the 2nd quarter. Amundi now owns 3,823 shares of the technology company's stock valued at $874,000 after purchasing an additional 3,818 shares during the last quarter. Finally, Gamco Investors INC. ET AL acquired a new position in shares of OSI Systems in the second quarter valued at about $801,000. 89.21% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting OSI Systems

Here are the key news stories impacting OSI Systems this week:

• Positive Sentiment: OSI Systems reported adjusted quarterly EPS of $3.78, narrowly exceeding the $3.77 consensus estimate and rising from $2.84 a year earlier. Fiscal 2026 revenue reached a record $1.79 billion, up 4%, while year-end backlog increased to approximately $1.9 billion. OSI Systems Q4 Earnings Top Estimates
• Positive Sentiment: The board expanded the share-repurchase authorization by 1 million shares, leaving 1,078,731 shares available for repurchase. The company also bought back 564,880 shares for $123.6 million during the quarter, potentially supporting per-share value. OSI Systems Announces Expansion of Stock Repurchase Program
• Positive Sentiment: OSI Systems recently received an $85 million IDIQ contract from U.S. Customs and Border Protection for mobile X-ray inspection systems, reinforcing demand for its security products. OSI Systems Awarded $85 Million Contract
• Neutral Sentiment: Management forecast fiscal 2027 revenue of $1.875 billion to $1.93 billion, broadly consistent with Wall Street’s roughly $1.9 billion expectation. However, the timing of Middle East-related deliveries creates near-term execution uncertainty. OSI Systems Fiscal 2027 Revenue Forecast
• Negative Sentiment: Quarterly revenue was $484.1 million, well below the $529.7 million analyst consensus and down roughly 4% year over year. Fiscal 2027 adjusted EPS guidance of $11.13 to $11.49 has a midpoint of $11.31, below the $11.44 consensus, weighing on the stock despite the EPS beat. OSI Systems Stock Reaction

About OSI Systems

OSI Systems, Inc NASDAQ: OSIS is a publicly traded technology company founded in 1987 and headquartered in Hawthorne, California. The company designs, develops and manufactures advanced security and inspection systems, optoelectronic devices and medical imaging equipment. Over its history, OSI Systems has grown its product offerings through internal research and development as well as strategic acquisitions, expanding its capabilities in mission-critical sensing and inspection technologies.

OSI Systems operates three primary business segments.

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