Outset Medical plummets on grim outlook, BofA double downgrade

Outset Medical

13/10/2023 15:19

** Outset Medical  OM.O  shares plunge 47.9% to $3.53, after
hitting fresh record low on Fri, following medtech firm's
cautious outlook and BofA Global Research rating cut to
"underperform" from "buy"
    ** Co said late Thurs growth in current qtr dampened by
larger-than-expected impact from recent FDA warning letter, and
early signs of more cautious outlook on capital spending seen as
headwind continuing into Q4 - CEO Leslie Trigg
    ** Co lowered 2023 rev guidance to about $130 mln from prior
forecast of $144-$150 mln
    ** "...Outset has had multiple execution missteps now and
companies without profitability have even less margin of error
given there is no real profitability valuation floor," BofA says
in note
    ** BofA chops its PT from $32 to Street-low $3, per LSEG
data
    ** Among other PT cuts, TD Cowen slashes from $32 to $9 and
RBC hacks from $29 to $17
    ** Dialysis provider Outset's shares falling for 3rd
straight session and have shed about 65% since Novo Nordisk's
 NOVOb.CO  Ozempic showed early success in a trial to treat
kidney failure

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))