Merit Medical Systems: Above-Consensus Growth and Stable Governance Support Reaffirmed Buy Rating

Michael Matson, an analyst from Needham, reiterated the Buy rating on Merit Medical Systems. The associated price target remains the same with $108.00.

Michael Matson has given his Buy rating due to a combination of factors that underscore Merit Medical Systems’ solid operating momentum and constructive outlook. The company’s preliminary guidance for fourth-quarter 2025 revenue of $389–395 million implies year-over-year growth around 10–11% on a reported basis and 8–10% in constant currency, coming in ahead of consensus expectations. This outperformance, coupled with estimated organic growth of roughly 6–7% in the quarter (following 8% organic growth in the prior quarter), signals sustained demand across MMSI’s portfolio and supports a favorable growth trajectory. Matson also notes that further clarity on the company’s 2026 financial outlook will be provided when MMSI releases its full 4Q25 results, which could serve as an additional catalyst.

In addition to the financial momentum, Matson factors in the company’s evolving governance structure. The appointment of F. Ann Millner as Chair of the Board, succeeding founder Fred Lampropoulos, reflects an orderly leadership transition and the continued presence of experienced oversight, given her prior tenure as a director and Lead Independent Director. The ongoing consulting arrangement with Lampropoulos further helps preserve institutional knowledge during this change. Taken together, the above-consensus revenue guidance, resilient organic growth profile, and stable leadership framework underpin Matson’s conviction that MMSI shares remain attractive at current levels, justifying the reaffirmed Buy rating.

According to TipRanks, Matson is a 3-star analyst with an average return of 1.9% and a 45.98% success rate. Matson covers the Healthcare sector, focusing on stocks such as Masimo, TransMedics Group, and Hologic.