Merit Medical Systems: Strong Performance and Growth Potential Amid Tariff Challenges

Michael Matson, an analyst from Needham, maintained the Buy rating on Merit Medical Systems (MMSI – Research Report). The associated price target was lowered to $100.00.

Michael Matson has given his Buy rating due to a combination of factors that highlight Merit Medical Systems’ solid performance and potential for future growth. The company reported better-than-expected revenue and earnings per share (EPS) for the first quarter of 2025, despite facing challenges from tariffs that affected EPS. Management’s decision to maintain its revenue guidance for 2025, along with stable organic revenue growth, reflects confidence in the company’s strategic execution.
Furthermore, Merit Medical Systems showed improvements in both gross and operating margins, indicating enhanced operational efficiency. Although free cash flow saw a slight decline compared to the previous year, the company’s ability to generate $20 million in the first quarter demonstrates financial resilience. While the impact of China tariffs is a concern, any potential reduction in these tariffs could alleviate the EPS pressure. Consequently, Matson maintains a Buy rating, albeit with a revised price target, acknowledging the company’s strengths and the potential for tariff relief.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $106.00 price target.

Based on the recent corporate insider activity of 43 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.