Outset Medical price target lowered to $17 from $29 at RBC Capital

RBC Capital lowered the firm’s price target on Outset Medical to $17 from $29 but keeps an Outperform rating on the shares after its negative Q3 revenue pre-announcement. The revision was impacted by the FDA Warning Letter and a more cautious capital outlook, while the company’s initial FY24 outlook in early November is also likely to reflect the current environment, the analyst tells investors in a research note. RBC adds however that with the stock trading at indicated 0.6-times enterprise value to expected next-12-months sales, it is sticking with Outperform rating.