Larry Biegelsen, an analyst from Wells Fargo, maintained the Hold rating on Merit Medical Systems (MMSI – Research Report). The associated price target is $81.00.
Geoff Meacham has given his Hold rating due to a combination of factors surrounding Merit Medical Systems. The company’s recent performance, particularly in its OEM business and the consistent market performance in China, have been noted as positive aspects. However, the anticipation of growth in the OEM business at a high single-digit rate suggests a steady yet not exceptional outlook. Additionally, while there is optimism about the potential of the Wrapsody product to become a market leader, the full data from its pivotal trial is still pending, and the FDA submission is projected for the second quarter, indicating a period of waiting before any significant market impact can be realized.
The Hold rating is further supported by the maintained projection for Wrapsody as a $50 million product, which, while promising, does not yet alter the company’s financial outlook dramatically. The comparison with Gore’s Viabahn, a $150 million product, underscores the competitive challenges and the need for Merit Medical Systems to achieve significant market penetration. The ongoing build-out of a 500-person registry for Wrapsody demonstrates the company’s commitment to substantiating its product’s market potential, but with only approximately 25% of the target patients enrolled to date, there remains work to be done. These factors collectively contribute to a cautious but not bearish perspective, leading to the Hold rating.
MMSI’s price has also changed slightly for the past six months – from $82.260 to $78.370, which is a -4.73% drop .
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Merit Medical Systems (MMSI) Company Description:
Merit Medical Systems, Inc. engages in the manufacture and market of proprietary disposable medical devices. It operates through Cardiovascular and Endoscopy segments. The Cardiovascular segment consists of peripheral intervention, cardiac intervention, interventional oncology and spine, and cardiovascular and critical care product groups. The Endoscopy segment integrates advanced non-vascular stent technology with balloon dilators, inflation devices, guide wires, procedure kits, and other devices that are used by gastroenterologists, endoscopists, pulmonologists, and thoracic and general surgeons. The company was founded by Fred P. Lampropoulos, Darla Gill, Kent W. Stanger and William Padilla in July 1987 and is headquartered in South Jordan, UT.
Read More on MMSI:
- Merit Medical Announces Projected Preliminary Unaudited Revenue for the Year Ended December 31, 2023 and Plans to Announce Fourth Quarter and Year End 2023 Results and Issue Fiscal Year 2024 Guidance on February 28, 2024
- Merit Medical report FY23 preliminary revenue $1.255B-$1.259B, consensus $1.25B
- Merit Medical upgraded to Buy from Hold at Canaccord
- Merit Medical announces process for CEO succession planning
- Merit Medical Announces Process for Chief Executive Officer Succession Planning
