Should I Buy OM? OM 2026 Analysis

Should You Buy Outset Medical Inc (OM) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

5.070

1 Day change

0.90%

52 Week Range

21.980

Analysis Updated At

2026/01/26

Outset Medical Inc (OM) is not a strong buy at this time for a beginner investor with a long-term focus. The company's financial performance is weak, with declining revenue, net income, and EPS. Insider selling has significantly increased, and there are no recent positive news or catalysts. While the technical indicators are neutral, and options data shows bearish sentiment, the lack of strong proprietary trading signals and mixed analyst ratings suggest holding off on investment until clearer positive momentum develops.

Technical Analysis

The MACD is positive but contracting, RSI is neutral at 53.414, and moving averages are converging, indicating no clear trend. Support is at 4.574, and resistance is at 6.163. The stock is currently trading below the pivot point of 5.368, suggesting potential downward pressure.

Options Data

Bullish

Open Interest Put-Call Ratio

Bearish

Option Volume Put-Call Ratio

The high Option Volume Put-Call Ratio of 11.0 indicates bearish sentiment, with significantly more put volume than call volume. Implied volatility is high at 95.55, but its percentile rank is low at 7.78, suggesting limited near-term price movement.

Technical Summary

Sell

Buy

Positive Catalysts

Gross margin increased by 7.98% YoY, indicating some operational efficiency improvements. Analysts note a strong pipeline for future performance, and the medical supplies sector benefits from favorable demographic trends.

Neutral/Negative Catalysts

Insider selling has increased by 2356.36% over the last month, signaling a lack of confidence. The company missed Q3 revenue expectations, lowered guidance, and faces delays in closing large deals. Analyst price targets have been significantly reduced, and sentiment remains mixed. No recent news or congress trading data to provide positive momentum.

Financial Performance

In Q4 2025, revenue dropped by 1.92% YoY to $28.9M, net income fell to $0 (down 100% YoY), and EPS declined by 86.28% YoY to -1. Gross margin improved to 39.38%, up 7.98% YoY, but overall financial performance remains weak.

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

Analysts have lowered price targets significantly, with RBC reducing its target to $7 from $17, and others like BTIG, Stifel, and TD Cowen also cutting targets. Ratings are mixed, with some maintaining Buy ratings but acknowledging execution challenges and delays in enterprise deals.

4 Analyst Rating

Wall Street analysts forecast OM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for OM is 11.75 USD with a low forecast of 7 USD and a high forecast of 17 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

3 Buy

1 Hold

0 Sell

Strong Buy

Current: 5.025

Low

Averages

11.75

High

Current: 5.025

Low

Averages

11.75

High

RBC Capital

Shagun Singh

Sector Perform

downgrade

$17 -> $7

AI Analysis

2025-12-17

Reason

RBC Capital

Shagun Singh

Price Target

$17 -> $7

AI Analysis

2025-12-17

downgrade

Sector Perform

Reason

RBC Capital analyst Shagun Singh lowered the firm's price target on Outset Medical to $7 from $17 and keeps a Sector Perform rating on the shares as part of a broader research note previewing 2026 for Medical Supplies & Devices. The firm anticipates a year of positive momentum as sector fundamentals are solidly intact driven by the aging demographics, growing global healthcare access, and differentiated innovation, the analyst tells investors in a research note. For the company, RBC notes that Outset's Q3 miss and resulting downward revision in guidance was driven by delays in executing the company's commercial and sales transformation, as well as delays in closing several large deals that were originally anticipated in the second half of the year, and with execution misses in recent years, sentiment on the stock is "mixed at best".

BTIG

Marie Thibault

Buy

downgrade

$39 -> $17

2025-11-11

Reason

BTIG

Marie Thibault

Price Target

$39 -> $17

2025-11-11

downgrade

Buy

Reason

BTIG analyst Marie Thibault lowered the firm's price target on Outset Medical to $17 from $39 and keeps a Buy rating on the shares. The company's Q3 revenue of $29.4M fell short of the consensus estimate as Consumables revenue of $12.2M was below consensus of $14.7M, the analyst tells investors in a research note. The firm adds it is surprised by the shortfall as it viewed the guidance as relatively conservative following a strong Q2 print that included an uptick in Console revenue.

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OM Should I Buy

OM Should I Buy

Should You Buy Outset Medical Inc (OM) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Technical Summary

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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