On Tuesday, Piper Sandler adjusted its outlook on Inari Medical Inc. (NASDAQ: NARI), increasing the price target to $52.00 from the previous $50.00, while keeping a Neutral rating on the stock. The adjustment follows Inari Medical's announcement of a record high revenue for the third quarter, reaching $153.4 million, a 21.4% year-over-year increase. This performance surpassed both the consensus estimate of $150.7 million and Piper Sandler's own projection of $150.0 million.
The company's revenue beat was attributed to the robust performance of its U.S. core venous thromboembolism (VTE) franchise. In response to the strong quarter, Inari Medical raised its full-year 2024 revenue forecast by $3.5 million at the midpoint, now expecting revenues to be between $601.5 and $604.5 million, which would represent a year-over-year growth of 21.9% to 22.5%.
Inari Medical also shared updates on its operations, which included the commencement of the Artix LMR, marking the company's entry into the U.S. arterial market. Additionally, the company has secured approval in Japan for its ClotTriever product. Inari Medical reaffirmed its commitment to achieving sustained GAAP operating profitability in the first half of 2025.
The analyst from Piper Sandler noted the company's recent performance, stating, "Altogether, there's not a lot to pick at in the quarter, and we acknowledge the recent stretch of execution has been solid." Despite the positive developments, the firm maintains a Neutral stance, indicating a wait-and-see approach for continued execution in future quarters. The new price target reflects a slight increase in confidence, moving up to $52 from $50.
In other recent news, Inari Medical has been the focus of several analyst adjustments following its robust third-quarter earnings. The company reported a revenue of $153.4 million, a 21.4% increase year-over-year, surpassing the consensus estimate of $150.7 million. In response to this performance, Inari Medical raised its full-year 2024 revenue guidance to a range of $601.5 million to $604.5 million.
Analysts from Baird, Canaccord Genuity, and Truist Securities have all revised their price targets for Inari Medical, setting them at $67, $74, and $50 respectively. BTIG has reaffirmed a Buy rating with an $86 price target, while Stifel initiated coverage with a Hold rating and a $50 price target.
Inari Medical is also anticipating significant growth contributions in 2025 from its Emerging Therapies and international markets. The company is expected to present results from its significant PEERLESS trial, which compares its FlowTriever system to traditional treatments for Pulmonary Embolism.
InvestingPro Insights
Inari Medical's recent financial performance and market position are further illuminated by data from InvestingPro. The company's impressive gross profit margin of 87.15% for the last twelve months as of Q2 2024 aligns with the InvestingPro Tip highlighting "impressive gross profit margins." This robust margin supports Inari's ability to invest in growth initiatives like the Artix LMR and expansion into Japan.
However, investors should note that despite strong revenue growth of 24.67% over the same period, Inari Medical is not currently profitable, with an operating income margin of -3.76%. This context adds importance to the company's commitment to achieving GAAP operating profitability by the first half of 2025, as mentioned in the article.
The market cap of $2.48 billion and a Price to Book ratio of 5.85 suggest that investors are pricing in expectations for future growth, despite current profitability challenges. This valuation perspective is reinforced by an InvestingPro Tip indicating that the company is "trading at a high Price / Book multiple."
For readers interested in a deeper dive into Inari Medical's financial health and market position, InvestingPro offers 5 additional tips and a comprehensive set of financial metrics to inform investment decisions.
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