OSI Systems to show significant backlog growth with Q4 results, says Roth MKM

Roth MKM analyst Jeff Martin keeps a Buy rating and $152 price target on OSI Systems ahead of its Q4 results this Thursday. The company is expected to show a significant backlog growth exiting FY23, while a strong FY24 initial guidance can provide a catalyst for the stock, which currently trades for 9.6-times the firm’s expected FY24 adjusted EBITDA estimate, the analyst tells investors in a research note. A double-digit revenue growth profile for FY24 and meaningful operating leverage can also facilitate multiple expansion, the firm added.