OSI Systems stock gained 5% after favorable rating

OSI Systems saw its stock rise by more than 5% this week. This increase followed news that Bank of America included the company in its list of favorite small-cap stocks. The addition to the Endeavor List was notable since it typically contains only 15 to 30 stocks. Bank of America replaced the specialty restaurant chain Sweetgreen with OSI Systems on this list. However, the reasons for this choice were not immediately clear. The company has faced challenges recently, especially after a negative report from short seller Culper Research. Culper's report criticized OSI Systems, claiming that much of its recent growth came from a single contract with Mexico's Ministry of Defense. This deal involves supplying vehicle and cargo-screening systems for border crossings. Following the report's publication, OSI's stock experienced a significant decline. Despite the encouraging news from Bank of America, the troubling allegations in the report linger. Investors are advised to be cautious and conduct thorough research on OSI Systems before making any decisions.