Varian Medical Systems (VAR), a leading radiation oncology treatment solutions developer, is a major player in this niche market. It has seen some significant growth in recent years. Let’s look at Wall Street analysts’ recommendations and target prices for the company over the next 12 months. Based on ten brokerage firms’ recommendations in a Reuters survey, Varian Medical Systems is rated as a “buy” by 30% of the firms, while ~60% of the analysts provided a “buy” rating for the company. Varian Medical Systems was given a “sell” rating by one analyst.
In the above chart, you can see a recommendation summary for Varian Medical Systems over the next year. The stock’s consensus 12-month target price is $97.1, which is an approximately -5.4% return potential compared to Varian Medical Systems’ price of $102.7 on June 29, 2017.
Considering analysts’ recent recommendations, the lowest 12-month target price for Varian Medical Systems stands at $75, while the company’s highest 12-month target price is $99. The target prices represent the lowest one-year return potential of -23% and the highest one-year return potential of 2%. RBC Capital Markets initiated coverage on Varian Medical Systems in January 2017 with a “buy” rating and a target price of $87.
Peers Intuitive Surgical (ISRG), Boston Scientific (BSX), and Accuray (ARAY) have average broker target prices of ~$891.7, $30.4, and $6.3, respectively. These figures imply returns of -5%, 9.3%, and 31.6%, respectively, over the next 12 months.
Investors looking for industry-focused investment in Varian Medical Systems can consider investing in the iShares U.S. Medical Devices ETF (IHI). Varian Medical Systems accounts for ~1.7% of IHI’s total holdings.
For diversified exposure to Varian Medical Systems, investors can check out the Vanguard S&P 500 ETF (IWD), which has ~0.05% of its total portfolio in Varian Medical Systems.