Merit Medical’s Strategic Acquisition of Biolife Delaware: A Long-Term Growth Catalyst

Merit Medical Systems (MMSI – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Michael Matson from Needham maintained a Buy rating on the stock and has a $108.00 price target.

Michael Matson has given his Buy rating due to a combination of factors surrounding Merit Medical Systems’ recent acquisition of Biolife Delaware LLC. The acquisition, valued at $120 million, is expected to align with Merit Medical’s strategic focus on acquiring complementary businesses that can enhance its product offerings and market reach.
Although the acquisition is projected to be slightly dilutive to the company’s 2025 non-GAAP EPS, it is anticipated to become accretive by 2026. This aligns with the company’s long-term goals of improving profitability and generating strong free cash flow. The acquisition is expected to contribute $10-11 million in revenue by 2026, reinforcing the company’s growth trajectory and justifying the Buy rating.

According to TipRanks, Matson is an analyst with an average return of -6.9% and a 39.16% success rate. Matson covers the Healthcare sector, focusing on stocks such as Merit Medical Systems, LivaNova, and TransMedics Group.