Bank of America Securities analyst Travis Steed maintained a Hold rating on Merit Medical Systems yesterday and set a price target of $90.00.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Travis Steed has given his Hold rating due to a combination of factors surrounding Merit Medical Systems’ WRAPSODY stent. The initial feedback from a key interventional radiologist indicates positive early outcomes and an increase in utilization, with a significant transition from competing products. However, the long-term durability data is still pending, and it will take years to fully establish the stent’s performance.
Another critical factor influencing the Hold rating is the pricing challenge. Although the price was reduced from nearly $6,000 to $3,500, WRAPSODY remains more expensive than its competitors, creating a barrier to broader adoption. The lack of transitional pass-through payment (TPT) further complicates its market penetration. While the device is easy to use and offers advantages in size, the long-term clinical superiority necessary to justify its premium pricing has yet to be proven. Consequently, institutions remain cautious, weighing the cost-benefit trade-offs, which supports the Hold recommendation.
According to TipRanks, Steed is a 4-star analyst with an average return of 7.0% and a 60.00% success rate. Steed covers the Healthcare sector, focusing on stocks such as Boston Scientific, Intuitive Surgical, and Medtronic.