Outset Medical downgraded to Underperform from Buy at BofA

BofA downgraded Outset Medical to Underperform from Buy with a price target of $3, down from $32. After Outset pre-announced a Q3 revenue miss and lowered 2023 guidance, the firm says Outset has had “multiple execution missteps now.” Companies without profitability “have even less margin of error given there is no real profitability valuation floor,” adds the firm, which does not see any read through to other capital equipment and sees this as Outset specific.