Analyst Craig Bijou of Bank of America Securities reiterated a Hold rating on Merit Medical Systems (MMSI – Research Report), retaining the price target of $118.00.
Craig Bijou has given his Hold rating due to a combination of factors surrounding Merit Medical Systems. Despite a positive outlook from the company’s management and a promising start to the year, Bijou remains cautious about the potential for significant stock price appreciation. The company’s growth initiatives and the Wrapsody product are progressing well, but there are concerns about external risks such as hospital budgets, tariffs, and the economic situation in China, which could impact future performance.
Merit’s conservative guidance for Q1, despite a history of exceeding expectations, suggests that the company is managing expectations carefully. While there is optimism about the company’s ability to beat its Q1 targets, Bijou believes that the potential for multiple expansion is limited in the current market environment. Additionally, while the tariff risks are considered manageable and the company has contingency plans in place, the lack of clarity on the full impact keeps the outlook cautious. Overall, these factors contribute to the decision to maintain a Hold rating on the stock.
Based on the recent corporate insider activity of 41 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MMSI in relation to earlier this year.