Positive Outlook for Merit Medical Systems Amid Tariff Reductions and Resilient Growth

Wells Fargo analyst Larry Biegelsen has maintained their bullish stance on MMSI stock, giving a Buy rating on May 23.

Larry Biegelsen has given his Buy rating due to a combination of factors that suggest a positive outlook for Merit Medical Systems. The recent reduction in tariff rates between the US and China is expected to provide a significant financial benefit to the company, potentially adding up to $21 million to the fiscal year 2025 earnings. This improvement aligns with the company’s original earnings guidance, indicating a stable financial trajectory.
Moreover, Merit Medical Systems is maintaining its long-range plan targets, including organic revenue growth and operating margin goals, despite the challenges posed by tariffs and other market conditions. The company has demonstrated resilience with consistent gross margin improvements and a positive outlook for its operations in China, which are expected to recover to pre-impact growth levels. These factors contribute to a favorable investment thesis, supporting the Buy rating.

According to TipRanks, Biegelsen is a 5-star analyst with an average return of 9.2% and a 59.08% success rate. Biegelsen covers the Healthcare sector, focusing on stocks such as Dexcom, Abbott Laboratories, and Medtronic.

In another report released on May 23, Piper Sandler also maintained a Buy rating on the stock with a $110.00 price target.