Needham analyst Michael Matson has maintained their neutral stance on SRDX stock, giving a Hold rating on July 26.
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Michael Matson has given his Hold rating due to a combination of factors related to SurModics’ recent financial performance and potential future developments. The company’s revenue, adjusted EBITDA, and EPS for the second quarter of fiscal year 2025 surpassed market expectations, and there was an improvement in revenue decline from the previous quarter. Additionally, the management’s upward revision of the full-year revenue and EPS guidance, which exceeded consensus estimates, reflects a positive outlook.
However, Matson’s Hold rating is influenced by the uncertainty surrounding the pending acquisition by GTCR, a private equity firm. There is a risk that the Federal Trade Commission may block this sale, which adds a layer of unpredictability to the stock’s future. In the event that the deal does not proceed, Matson estimates the stock’s value based on its enterprise value to sales multiple, which aligns with its peers, and includes a break-up fee. This cautious approach reflects the balance between positive financial performance and the uncertainties of the acquisition process.
Matson covers the Healthcare sector, focusing on stocks such as TransMedics Group, Merit Medical Systems, and Establishment Labs Holdings. According to TipRanks, Matson has an average return of -7.4% and a 36.95% success rate on recommended stocks.
In another report released on July 26, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $37.00 price target.