On Monday, Piper Sandler maintained its Overweight rating and $110.00 stock price target for Merit Medical Systems , Inc. (NASDAQ:MMSI), following the presentation of favorable clinical trial results. The WAVE pivotal trial for the WRAPSODY endovascular stent graft was showcased at the CIRSE conference held in Lisbon, Portugal, over the weekend.
The trial's six-month safety and efficacy outcomes were disclosed, revealing a target lesion primary patency (TLPP) rate of 89.8% (p
The WRAPSODY endovascular stent graft also demonstrated a more favorable safety profile, with significantly fewer safety events compared to the PTA control arm—5 events versus 21 events. Although this difference in the number of safety events was not deemed statistically significant, it suggests a potential advantage in terms of safety for the WRAPSODY system.
Piper Sandler's stance on Merit Medical remains positive, with the analyst expressing that the clinical results were as good as could have been hoped for. The data presented indicates that the WRAPSODY stent graft could offer a substantial improvement in treatment outcomes for patients requiring endovascular interventions.
Merit Medical's stock rating and price target reaffirmation by Piper Sandler comes in the wake of these encouraging clinical trial results, suggesting confidence in the company's product performance and its potential impact on the market.
In other recent news, Merit Medical Systems has delivered a strong financial performance in the second quarter of 2024, with a total revenue of $338 million, marking a 5.6% increase year-over-year. The company's growth was driven by organic growth and acquired products, including the acquisition of EndoGastric Solutions for $105 million. The company's updated financial guidance for 2024 projects a net revenue increase of 6-7% and non-GAAP diluted EPS growth of 15-17%.
The company's WRAPSODY device, designed for maintaining vascular access in hemodialysis patients, demonstrated a significant target lesion primary patency rate of 90%, surpassing the outcomes from primary competitors. The positive results from the WAVE study suggest that Merit Medical's Wrapsody device could have a competitive advantage in the market.
Wells Fargo and BofA Securities have both increased their price targets on Merit Medical's stock in light of these recent developments. Wells Fargo raised its target to $103, and BofA Securities to $103. These adjustments reflect the potential for the WRAPSODY device to become a leading option in the treatment of AV fistula patients and the anticipation of the WAVE trial data for the WRAPSODY product.
InvestingPro Insights
Merit Medical Systems, Inc. (NASDAQ: MMSI) has recently been in the spotlight following Piper Sandler's reaffirmation of its Overweight rating and $110.00 price target. Delving deeper into the company's financial health and market performance, InvestingPro data highlights a market capitalization of approximately $5.6 billion, reflecting its substantial presence in the medical device industry. With a P/E ratio standing at 47.49, the company is trading at a high earnings multiple, which suggests that investors are expecting higher future earnings growth.
InvestingPro Tips indicate that Merit Medical is expected to see net income growth this year, which aligns with the positive clinical trial outcomes reported for the WRAPSODY stent graft. Moreover, the company is trading near its 52-week high, with a price percentage of the high at 98.08%, underscoring the market's optimistic view of its recent performance and future prospects. Furthermore, the company has demonstrated a strong return over the last three months, with a 17.56% price total return, reinforcing the confidence expressed by Piper Sandler.
For investors seeking more detailed analysis and additional insights, there are over 15 InvestingPro Tips available, which can further inform investment decisions regarding Merit Medical Systems. These can be found by visiting the dedicated InvestingPro page for Merit Medical at https://www.investing.com/pro/MMSI.
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