Citigroup recently upgraded this medical device company’s shares to ‘Buy”. The company just closed its acquisition of Sirtex Medical Systems, an Australia-based life sciences focused on interventional oncology therapies and is a global leader in radioembolization (a minimally-invasive therapy for the treatment of liver cancer).
Varian Medical Systems (VAR)
From Schaeffer’s Investment Research
Corporate earnings have been a big reason the U.S. stock market has been able to notch one record high after another in 2018, and the impressive quarterly updates show no sign of slowing down.
Shares of Varian Medical Systems (VAR)-- a company that makes devices and software for radiation oncology treatments -- have spiked 10.5% out of the gate to trade at $124.93, tapping a record high of $125.42 in the process. The company said fiscal first-quarter profit more than doubled, helping it top earnings forecasts, while it also boosted its full-year outlook. In response, brokerage firm Barrington upgraded VAR to “outperform,” and Citigroup and RBC raised their respective price targets to $132 and $115 -- though Goldman Sachs cut its rating to “sell.”
While the shares are pacing for their third best single-day performance over the past 10 years, Varian is no stranger to technical strength; the equity has jumped 52% over the past year alone. Considering this, the negativity seen from analysts is shocking. Specifically, just one of the eight brokerage firms in coverage say to buy the stock, and the average 12-month price target of $112.78 is now below current trading levels.
Bernie Schaeffer, Schaeffer’s Investment Research, www.SchaeffersResearch.com, 800-327-8833, January 25, 2018