Varex Imaging (VREX) Stock Forecast & Price Target

Varex Imaging Corp has demonstrated significant growth, particularly in its industrial segment, which achieved record revenues of $76.8 million, reflecting a year-over-year increase of 25.3%, while the medical segment also saw a positive growth of 5.3% year-over-year with revenues of $152.1 million. The company is benefiting from a stabilization in the Chinese market and is positioned for further growth due to increased orders and production capabilities in India, alongside strong expectations for the cargo inspection business into FY2026. Management also indicates a positive outlook driven by advancements in photon counting CT technology, which supports strong relationships with original equipment manufacturers, forecasting continued revenue growth across both segments in the coming years.

Varex Imaging Corp's stock outlook appears negative primarily due to external pressures arising from trade tensions and ongoing challenges in the Chinese market, which constitutes approximately 15% of the company's revenues. The company's financial position is concerning, reflected in a decrease of $58 million year-over-year in cash and marketable securities, despite a slight sequential increase of $2 million. Additionally, complications in importing materials resulting from increased costs further exacerbate the company's challenges in maintaining a stable operational environment.