Outset Medical (OM) Stock Forecast & Price Target

Outset Medical Inc. has demonstrated strong sales performance for Tablo consoles, exceeding expectations in Q3 despite a delay in a large order, positioning the company to achieve profitability through ongoing cost reduction and manufacturing efficiency initiatives. The improvement in gross margins signifies a positive trend, with the company maintaining guidance for a high-30s percentage for FY25, which supports aspirations to reach a long-term goal of 50% gross margins. Additionally, Outset is on track to meet its cash burn target of under $50 million for 2025, with substantial progress in consumable orders and a growing pipeline that enhances its overall market potential.

Outset Medical Inc. has revised its full-year revenue guidance downward by approximately $7 million, indicative of ongoing challenges in enterprise deal timing and a disappointing sales performance in Q3, which failed to meet expectations with total revenues of $29.4 million falling short of consensus estimates. Additionally, the company's traditionally reliable Consumables revenue has weakened significantly due to reduced orders from acute care customers, contributing to the overall sales miss. The recent departure of the head of sales raises concerns about potential disruptions in the salesforce during a pivotal period, further influencing the company's cautious outlook for future guidance.