B. Riley Securities Boosts OSI Systems PT to $260 from $255.

B. Riley Securities Boosts OSI Systems PT to $260 from $255.

B. Riley Securities has increased its price target for OSI Systems (OSIS) to $260 from $255, reflecting the company's robust performance and promising growth prospects. The upgrade comes after OSI Systems reported record revenues and earnings for the fourth quarter of fiscal 2025, driven by strong demand in its Security and Optoelectronics divisions [1].

During the earnings call, President and CEO Ajay Mehra highlighted the company's "record revenues and adjusted EPS for both Q4 and fiscal '25," attributing the growth to its Security and Optoelectronics divisions. The Security division, in particular, saw a 7.1% year-over-year increase in revenues in Q4, with robust demand from airport and international border security customers [1]. The Optoelectronics division also performed well, achieving a Q4 record of $113 million [1].

The company's fiscal 2026 revenue guidance, which now ranges from $1.805 billion to $1.85 billion, represents a year-over-year growth rate of 5.4% to 8%. This guidance is based on anticipated opportunities from U.S. government security funding, including over $1 billion expected for new nonintrusive inspection equipment and related technologies at ports of entry [1]. The company also expects non-GAAP adjusted earnings per diluted share in the range of $10.11 to $10.39, representing 8% to 11% year-over-year growth [1].

B. Riley Securities' upgrade reflects a positive outlook on OSI Systems' ability to capitalize on these growth opportunities. The firm's analysts believe that the company's strong backlog and service revenue growth, particularly in the Security division, position it well for continued success [1].

Despite missing revenue and EPS forecasts in Q4 2025, OSI Systems' record non-GAAP adjusted EPS of $3.24 was a notable achievement. The company's performance in Q4 was driven by a 7% year-over-year increase in Security division revenues, with strong demand observed in aviation, cargo, and border security markets [2].

OSI Systems' stock price reacted to the earnings report, declining by 5.1% in pre-market trading. However, the stock remains trading near its Fair Value, with analysts maintaining price targets between $225 and $260 [2].

References:
[1] https://seekingalpha.com/news/4488107-osi-systems-outlines-5-percent-8-percent-revenue-growth-target-for-fiscal-2026-amid-record
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-osi-systems-q4-2025-results-miss-forecasts-stock-dips-93CH-4205241