Outset Medical (OM) Stock Forecast & Price Target

Outset Medical Inc. has demonstrated a strong trajectory in console sales, exceeding expectations in Q3 despite a delayed large order, which positions the company favorably for future profitability through ongoing cost reduction and manufacturing efficiency initiatives. The company is on track to achieve its cash burn target of under $50 million by 2025, having realized approximately $6 million in cash burn for the quarter, while also maintaining a stronger-than-expected adjusted gross margin of 39.8%. With significant clinical benefits and technical advantages of the Tablo system, along with an under-penetrated total addressable market (TAM), Outset Medical is poised for growth as it expands its market share in both the acute and home hemodialysis segments.

Outset Medical's stock outlook is negatively impacted by a reduction in full-year revenue guidance, which was lowered by approximately $7 million at the midpoint due to delays in enterprise deal timing and weaker-than-expected consumables revenue from acute care customers. The company reported total revenues of $29.4 million, falling short of both internal and consensus expectations, primarily driven by challenges in console revenue recognition and delayed enterprise deals anticipated to extend into 2026. Furthermore, the recent departure of the head of sales raises concerns about potential disruptions in the salesforce during a critical period, compounding investor frustration with the company's lack of consistency in performance.