Varex Imaging (VREX) Stock Forecast & Price Target

Varex Imaging Corp reported impressive growth across both its Medical and Industrial segments, with the Industrial segment achieving a record $76.8 million in revenue, marking a 25.3% year-over-year increase, while the Medical segment grew 5.3% year-over-year to $152.1 million. The company's operational expansion in India and its progress in the implementation of photon counting CT technology are expected to contribute to ongoing revenue growth, with management anticipating stronger orders in 2026 driven by rural healthcare demands. Additionally, Varex's strategic initiatives, such as diversifying material sources and expanding manufacturing capabilities, position the company to better navigate potential supply chain disruptions, further enhancing its financial outlook.

Varex Imaging Corp faces significant challenges that could adversely affect its stock performance, particularly due to trade tensions and anti-corruption measures in China, which account for approximately 15% of its total revenues. The company has reported a decline in cash and marketable securities, decreasing from $157 million in the previous year to $155 million, indicating potential liquidity concerns amidst rising operational costs and complexities in material imports. Additionally, while the long-term total addressable market (TAM) remains intact, current macroeconomic and geopolitical uncertainties present obstacles that may hinder short-term revenue stability.