John Young CFA, an analyst from Canaccord Genuity, maintained the Buy rating on Merit Medical Systems (MMSI – Research Report). The associated price target was lowered to $108.00.
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John Young CFA has given his Buy rating due to a combination of factors influencing Merit Medical Systems’ financial outlook. Despite the challenges posed by tariffs impacting margin expansion, the company demonstrated strong performance in the first quarter, exceeding both Canaccord Genuity and consensus estimates with significant revenue growth. The OEM business, in particular, showed impressive year-over-year growth, although management has noted its inconsistency.
While tariffs present a hurdle, John Young CFA believes that management’s cautious guidance and the reiterated free cash flow target for FY25 indicate a conservative approach that could mitigate risks. Additionally, potential developments such as the Wrapsody product and possible tariff relief could provide further upside. The adjusted price target reflects the current EPS outlook, but the Buy rating is maintained due to the company’s strategic positioning and potential for future growth.
In another report released today, Needham also maintained a Buy rating on the stock with a $100.00 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.