On Tuesday, Piper Sandler demonstrated a vote of confidence in shares of Merit Medical Systems , Inc. (NASDAQ:MMSI) by increasing the price target from $110.00 to $114.00. The firm sustained its Overweight rating on the stock.
Currently trading at $102.9 and near its 52-week high of $108.08, the $6 billion medical device company appears to be trading above its InvestingPro Fair Value. The adjustment follows recent meetings with the company's management, including CEO Fred Lampropoulos and CFO Raul Parra, which provided insights into the company's performance and future prospects.
During the past week, discussions with Merit Medical (TASE:PMCN)'s management revealed a broad-based top-line beat in the fourth quarter across various segments and geographies. The company has demonstrated solid growth with revenue increasing 8.12% over the last twelve months.
Piper Sandler's analysts highlighted the consistent messaging regarding China's Volume-Based Procurement (VBP) and noted the uncertainties surrounding tariffs, which make it difficult to draw definitive conclusions. InvestingPro data shows the company maintains excellent financial health with a "GREAT" overall score, suggesting strong operational fundamentals.
The analysts were particularly encouraged by the incremental information shared about WRAPSODY, Merit Medical's endovascular stent graft system. Ahead of the virtual investor event scheduled for January 28, the analysts expect WRAPSODY to become a more financially-driven catalyst compared to previous milestones.
Merit Medical's continuous delivery of solid quarterly results has been a contributing factor to Piper Sandler's positive stance. The analysts underscored the combination of Merit Medical's strong core performance and the growing momentum of WRAPSODY throughout 2025 as reasons for their optimism. While trading at a relatively high P/E ratio of 49.7, the stock maintains strong analyst support with a bullish consensus rating of 1.6.
The firm reiterated its Overweight rating and sees Merit Medical as one of their top stock picks for the year, based on these evaluations. For deeper insights into Merit Medical's valuation and growth prospects, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Merit Medical Systems has been making significant strides in its financial performance and growth strategy. The company preannounced its 2024 revenue to be between $1.355 and $1.357 billion, surpassing the consensus estimate of $1.348 billion. Needham reaffirmed its positive stance on Merit Medical Systems with a Buy rating, expressing confidence in the company's performance and future prospects.
Raymond (NSE:RYMD) James increased its price target for Merit Medical Systems shares, maintaining an Outperform rating. The company's Wrapsody Cell-Impermeable Endoprosthesis received premarket approval from the US Food and Drug Administration, with commercialization set to begin in 2025. This development is expected to contribute to the company's revenue stream and support its competitive position in the market.
Wells Fargo (NYSE:WFC) upgraded Merit Medical to Overweight, suggesting a positive outlook. The company's strong Q3 results were highlighted, with total revenue reaching $339.8 million, marking a 7.8% increase from the previous year. Additionally, the company acquired Cook Medical's lead management portfolio, which is expected to generate significant future revenue.
Lastly, in a significant leadership change, the company's President, Joseph C. Wright, recently resigned, with Fred P. Lampropoulos reinstated as the President. These are the recent developments for Merit Medical Systems, Inc.
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