Varian Medical Systems, Inc. (NYSE:VAR) a Buy: Brean Capital

In a research note issued to investors, Jason Wittes at Brean Capital Reiterated their Buy rating on Varian Medical Systems, Inc. (NYSE:VAR). The analyst placed a $96.00 price target on the stock which indicates a 8.89% upside to the last closing price. In the year following Wittes’s ratings, the stocks covered yield an average return of 4.30% according to TipRanks.com. In the past year 30 out of 51 recommendations or 59% were successful.

On a consensus basis, Wall Street sell-side analysts have a mean target price of $93.4 for Varian Medical Systems, Inc. (NYSE:VAR). This number is based on the mean estimate from the 5 research firms that recently issued reports on the company.

According to analysts, Varian Medical Systems, Inc. (NYSE:VAR) is expected to report earnings per share for the current fiscal quarter of $0.91. This is the consensus mean estimate based on the individual covering sell-side analysts’ reported numbers. The company last reported earnings for the period ending on 2015-03-31 of $1.05.

The average broker recommendation is arithmetical average of the individual ratings contributed by sell-side analysts to produce a Consensus Analyst Rating for each stock. On a scale of 1 to 5 where 1 is a Strong Buy and 5 is a Strong Sell, has the stock is ranked 2.06 based on 5 sell-side broker recommendations. Of the 5 analyst estimates, the most bullish sees the stock reaching $101 within the next 12 months while the most bearish analyst sees the stock at $80 within the year.

In looking at the long term growth prospects of the company, sell-side analysts have a consensus mean earnings per share estimate for the current year of $4.28. The high end estimate for this time frame is $4.44 with the low being $4.1. In looking at the next three to five years, the long term earnings per share estimate growth rate for the company is 7.4%, based on 2 analysts providing projections.

Varian Medical Systems, Inc. is engaged in the design, manufacture, sale and service of equipment and software products for treating cancer with radiotherapy, stereotactic radiotherapy, stereotactic body radiotherapy (SBRT), stereotactic radiosurgery (SRS) and brachytherapy. The Company also designs, manufactures, sells and services x-ray tubes for original equipment manufacturers (OEMs); replacement x-ray tubes, and flat panel digital image detectors for filmless x-ray imaging (flat panel detectors or digital image detectors) in medical, dental, veterinary, scientific and industrial applications. It designs, manufactures, sells and services linear accelerators, digital image detectors, image processing software and image detection products for security and inspection purposes. In March 2011, it acquired a privately-held supplier of devices for delivery of brachytherapy treatment of cancer. In August 2012, the Company established a subsidiary, Varian Medical Systems Korea.