Owens & Minor: UBS Maintains Buy Rating, PT Down to $7 from $13

Owens & Minor: UBS Maintains Buy Rating, PT Down to $7 from $13

Owens & Minor, Inc. (NYSE: OMI) has seen a notable adjustment in its stock price target by UBS, which has maintained its buy rating despite a reduction in the price target from $13 to $7. This move reflects the current market conditions and the company's recent financial performance.

In its latest financial report, Owens & Minor reported a significant debt reduction of $244 million in 2024, contributing to a two-year total debt reduction of $647 million. The company's 2025 guidance midpoint indicates double-digit adjusted EBITDA and adjusted EPS growth, along with improving cash flow. Additionally, the company has authorized a share repurchase program of up to $100 million.

Owens & Minor's 2025 financial outlook projects revenue in the range of $10.85 billion to $11.15 billion, adjusted EBITDA between $560 million and $590 million, and adjusted EPS ranging from $1.60 to $1.85. These projections are based on various assumptions, including stable commodity prices and FX rates.

The company's focus on optimizing its Products & Healthcare Services business and leveraging its Patient Direct platform is evident in its strategic initiatives. Active discussions are underway regarding the potential sale of the Products & Healthcare Services segment, which could provide additional financial flexibility.

Investors should note that the company's forward-looking statements are subject to known and unknown risks and uncertainties. The company's ability to successfully complete the sale of the P&HS business, raise additional financing for the acquisition of Rotech, and achieve its financial projections could be impacted by various factors.

Owens & Minor remains focused on delivering a strong 2025 and is confident in its ability to achieve double-digit adjusted EBITDA growth while improving cash flow. The company's ongoing efforts to optimize its business and enhance its financial flexibility are expected to support its long-term growth prospects.

References:
[1] https://www.businesswire.com/news/home/20250228859189/en/Owens-Minor-Reports-Fourth-Quarter-Full-Year-Financial-Results-and-Announces-Sale-Process-Underway-for-Products-Healthcare-Services-Segment