Varex Imaging (NASDAQ:VREX) Receives "Neutral" Rating from Sidoti

Key Points

• Sidoti reaffirmed a “Neutral” rating on Varex Imaging and set a $19 price target, implying 53.1% upside from the prior close. Overall, analysts maintain a consensus “Hold” rating with an average target of $16.88.
• Varex reported quarterly EPS of $0.31, beating the $0.21 consensus estimate, but revenue of $210.5 million fell short of the $215.5 million forecast. The company posted positive return on equity but continued to report a negative net margin.
• Teledyne’s proposed acquisition offers a major valuation catalyst: Teledyne will pay $18.90 per Varex share, subject to customary approvals and closing conditions. Varex withdrew financial guidance and canceled its earnings call because of the transaction.

Varex Imaging (NASDAQ:VREX - Get Free Report)'s stock had its "neutral" rating reissued by research analysts at Sidoti in a research report issued on Monday,Benzinga reports. They presently have a $19.00 price target on the stock. Sidoti's target price would suggest a potential upside of 53.10% from the stock's previous close.

Several other equities analysts also recently commented on the stock. Wall Street Zen raised shares of Varex Imaging from a "hold" rating to a "buy" rating in a research note on Saturday, July 4th. Zacks Research cut Varex Imaging from a "strong-buy" rating to a "hold" rating in a research note on Monday, July 27th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of Varex Imaging in a research report on Wednesday, June 24th. Two investment analysts have rated the stock with a Buy rating, three have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Hold" and an average price target of $16.88.

Varex Imaging Stock Performance

NASDAQ:VREX opened at $12.41 on Monday. Varex Imaging has a twelve month low of $8.42 and a twelve month high of $14.56. The company has a quick ratio of 1.43, a current ratio of 3.20 and a debt-to-equity ratio of 0.67. The stock's 50-day simple moving average is $10.77 and its 200 day simple moving average is $11.51. The firm has a market capitalization of $522.46 million, a PE ratio of -6.21 and a beta of 0.89.

Varex Imaging (NASDAQ:VREX - Get Free Report) last issued its earnings results on Monday, August 10th. The company reported $0.31 EPS for the quarter, topping the consensus estimate of $0.21 by $0.10. Varex Imaging had a positive return on equity of 8.19% and a negative net margin of 9.64%.The firm had revenue of $210.50 million during the quarter, compared to the consensus estimate of $215.50 million. On average, analysts anticipate that Varex Imaging will post 0.93 EPS for the current fiscal year.

Institutional Investors Weigh In On Varex Imaging

A number of institutional investors have recently modified their holdings of VREX. Pzena Investment Management LLC acquired a new position in Varex Imaging in the second quarter valued at $45,312,000. BlackRock Inc. bought a new position in shares of Varex Imaging in the 2nd quarter worth about $40,624,000. Vanguard Group Inc. raised its position in shares of Varex Imaging by 4.4% in the 3rd quarter. Vanguard Group Inc. now owns 2,989,847 shares of the company's stock worth $37,074,000 after acquiring an additional 126,396 shares in the last quarter. Cooke & Bieler LP boosted its position in shares of Varex Imaging by 2.2% during the 4th quarter. Cooke & Bieler LP now owns 1,632,525 shares of the company's stock valued at $19,019,000 after purchasing an additional 35,042 shares in the last quarter. Finally, Rice Hall James & Associates LLC acquired a new stake in Varex Imaging during the second quarter worth approximately $15,080,000.

Varex Imaging News Summary

Here are the key news stories impacting Varex Imaging this week:

• Positive Sentiment: Teledyne takeover provides a significant valuation catalyst. Teledyne will pay $18.90 per Varex share, subject to customary closing conditions and approvals. The offer represents a substantial premium to Varex’s recent trading level, giving investors a clearly defined cash exit value. Teledyne to acquire Varex Imaging in $1.1 billion deal
• Positive Sentiment: Varex delivered an earnings beat on profit. Quarterly earnings per share exceeded the analyst consensus estimate of $0.21, with the company reporting $15.7 million of attributable net income and $21 million in operating cash flow. Varex Imaging earnings results
• Neutral Sentiment: Revenue growth remained modest but positive. Fiscal third-quarter revenue was $210.5 million, up 4% year over year, including $134.0 million from Medical and $76.5 million from Industrial. The company also reported a 36.4% GAAP gross margin and $99 million in cash, cash equivalents and marketable securities. Varex Announces Financial Results for Third Quarter Fiscal Year 2026
• Negative Sentiment: Revenue fell short of expectations and the company withdrew normal investor communication. Revenue missed the approximately $215.5 million consensus estimate. Varex canceled its earnings conference call and will not provide financial guidance because of the Teledyne transaction, reducing visibility into standalone operating prospects. The quarter also included a $7 million reduction to revenue for expected customer reimbursements, partly offset by a $17 million U.S. Customs tariff refund.

About Varex Imaging

Varex Imaging Corporation is a global provider of X-ray imaging components and solutions for the medical, security and industrial markets. The company designs, develops and manufactures a broad range of products that convert X-ray energy into high-resolution digital images. Its portfolio includes X-ray tubes, flat panel detectors, digital sensors, specialty radiographic tubes and related software, all engineered to meet the demanding requirements of original equipment manufacturers (OEMs) in diagnostic imaging, computed tomography (CT), fluoroscopy, mammography, dental radiography and non-destructive testing applications.

The company's medical imaging offerings support a wide spectrum of clinical modalities, from portable radiography systems to advanced CT scanners, enhancing image quality and dose efficiency for healthcare providers.

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