Outset Medical downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Shagun Singh downgraded Outset Medical to Sector Perform from Outperform with a price target of $6, down from $14. The analyst sees the company’s second half of 2023 challenges, including competitive misinformation, staffing, capital environment, and customers waiting for TabloCart before purchasing Tablo consoles, persisting into early 2024. As such, Outset Medical faces a lack of catalysts to drive the stock meaningfully higher despite its current valuation, the analyst tells investors in a research note.