On Wednesday, Truist Securities adjusted its outlook on Inari Medical Inc. (NASDAQ:NARI), reducing the price target to $55 from the previous $60, while keeping a Hold rating on the stock. The adjustment follows Inari Medical's second quarter financial performance, which included a revenue beat and an upward revision of future expectations. Despite this positive outcome, the increase did not meet the high expectations that were set prior to the quarter's results.
Inari Medical reported approximately 17% growth in core US venous thromboembolism (VTE) treatment, which is slightly below the market growth rate of around 20%, as indicated by management. However, this growth rate remained consistent with the first quarter, suggesting a stabilization in the company's VTE treatment segment.
The company experienced a larger than anticipated operational profit loss, which could be concerning to investors, especially in the current climate where small and mid-size companies are scrutinized for their profit trends. Nevertheless, management has reaffirmed their commitment to achieving operational profitability by the second quarter of 2025.
In addition to the financial update, the company announced an unexpected transition of its Chief Financial Officer (CFO). This change is perceived by Truist Securities as a strategic move for succession planning. Despite the changes and the operational loss, the firm's stance remains a Hold on Inari Medical's shares.
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