On Wednesday, Truist Securities adjusted its stock price target for Inari Medical Inc. (NASDAQ:NARI), decreasing it to $55 from the previous $60, while maintaining a Hold rating on the company's stock. The adjustment follows Inari Medical's second-quarter earnings report, which, although showing a modest revenue beat and a raised forecast, did not quite meet the high expectations that were anticipated for the quarter.
The company reported approximately 17% growth in its core US Venous Thromboembolism (VTE) business, which remains slightly below the market average growth rate of around 20%, as stated by management. This figure, however, is consistent with the growth rate from the first quarter, suggesting a stabilization in their core business segment.
Inari Medical's operational loss was larger than expected, which could potentially concern investors, especially in a current climate where small to mid-size companies are being closely scrutinized for their profit trends. Despite this, management has reaffirmed their commitment to achieving operational profitability by the second quarter of 2025.
Additionally, the announcement of an unexpected Chief Financial Officer (CFO) transition alongside the earnings results was interpreted as a move towards succession planning. This executive change comes at a time when the company is navigating towards its profitability goals.
Truist Securities' reiteration of a Hold rating indicates a neutral stance on Inari Medical's stock, suggesting that the firm advises investors to maintain their positions without further buying or selling at this time.
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