Bank of America recently highlighted a significant opportunity for OSI Systems’ stock, pointing to a potential 14% increase thanks to President-elect Donald Trump’s emphasis on border security. Maintaining its positive stance, the firm reiterated a buy rating for the company and adjusted the price target from $175 to $205 per share. Alongside this, they updated their adjusted earnings forecasts for 2025 and 2026.
OSI Systems, known for its suite of security technologies including X-ray screening devices and metal detectors, could benefit substantially from Trump’s border policies. Analyst Mariana Perez Mora emphasized that Trump’s rigorous enforcement plans might serve as a major growth driver for OSI, given the expansive nature of these initiatives. Moreover, she highlighted OSI’s turnkey solutions, which could attract countries aiming to secure their cargo as they export to the U.S.
Mora explained, “We see the Trump Administration’s increased focus on border protection as pivotal for OSI. The potential demand hike from both U.S. Customs & Border Protection and countries exporting to the U.S., due to OSI’s appealing turnkey solutions, could help mitigate contract replacement challenges especially as existing large contracts wind down.”
However, Mora also pointed out a potential obstacle: Trump’s proposed import tariffs. If these tariffs are enacted, they might present a challenge for OSI by curbing the demand that the company could otherwise capitalize on in its cargo security division.
Notably, OSI’s stock reflected a robust performance, climbing about 40% in 2024.
