OSI Systems (OSIS) is positioned to deliver its 10th and 11th consecutive years of adjusted EPS growth following a solid Q3, Oppenheimer said in a Wednesday note.

The firm said Q3 results remained broadly consistent with the company's longer-term performance trends despite some softer near-term undercurrents, including lighter free cash flow, slower services growth and weaker smaller-scale security project orders.

Oppenheimer noted that comparable recurring services revenue rose nearly 20%, while the company's pipeline of cargo and aviation projects remains strong.

The firm also said accelerated share repurchases appear increasingly likely in 2026.

Oppenheimer maintained its outperform rating on OSI Systems with a $320 price target.

Price: 208.97, Change: -0.04, Percent Change: -0.02