On Tuesday, BTIG analysts downgraded Inari Medical (TASE:PMCN) Inc. (NASDAQ: NARI) stock rating from Buy to Neutral. The decision followed the recent announcement that Stryker (NYSE: SYK) has entered into a definitive agreement to acquire Inari Medical for $80 per share in cash, a deal that values the company at approximately $4.9 billion. The stock has shown remarkable momentum, surging over 27% in the past week.
The transaction, announced on Monday, is expected to be finalized by the end of the first quarter of 2025.According to InvestingPro, Inari Medical maintains impressive gross profit margins of nearly 87% and operates with a moderate debt level. Subscribers can access 13 additional ProTips and comprehensive financial analysis in the Pro Research Report.
Inari Medical's shares are currently trading at $79.45, a slight discount of around 1% to the acquisition price offered by Stryker. This narrow margin between the trading price and the buyout price led BTIG to adjust their recommendation. The stock is currently trading near its 52-week high, with technical indicators suggesting overbought conditions.
The acquisition by Stryker, a company with a Buy rating and a price target of $394 set by the analysts, signifies a strategic move to expand its portfolio in the medical technology field. The all-cash deal at $80 per share provides a clear exit value for Inari Medical's shareholders.
The downgrade to Neutral from Buy reflects the analysts' view that, with the acquisition price set and the stock trading close to that value, there is limited upside for investors at this stage. The market has largely factored in the acquisition details, aligning the stock price with the expected buyout value.
In other recent news, Inari Medical has been the focus of several analyst adjustments following its definitive agreement to be acquired by Stryker Corporation (NYSE:SYK) for $80 per share, equating to an enterprise value of approximately $4.8 billion. Analysts at Piper Sandler, Baird, and Canaccord Genuity have all adjusted their price targets to $80, with Baird and Canaccord downgrading the stock to Neutral and Hold respectively. The merger is expected to enhance Stryker's neurology franchise and provide entry into the peripheral vascular sector.
Inari Medical recently reported a record third-quarter revenue of $153.4 million, marking a 21% year-over-year increase. The company has also raised its full-year revenue outlook to between $601.5 million and $604.5 million. The company's ClotTriever Thrombectomy System for deep vein thrombosis has received national reimbursement approval in Japan, further solidifying its market position.
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