OSI Systems (NASDAQ:OSIS) share are up 6.7% premarket after a Drexel Hamilton analyst defends the company against yesterday’s Muddy Waters report.
Analyst Brian Ruttenbur, who has followed OSI Systems for 15 years, estimates that the key Mexico contract contributes $120M to annual revenues with profits close to $30M of EBITDA. Muddy Waters had estimated $100M of EBITDA. Ruttenbur also expects the contract to renew next year with a lower revenue run rate that’s already factored into his estimates.
OSI Systems shares closed yesterday down 29.2% after the Muddy Waters report.
Source: Notable Calls
Previously: OSI Systems -11.8% after Muddy Waters report (Dec. 6)
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