Analyst Travis Steed of Bank of America Securities reiterated a Hold rating on Merit Medical Systems, with a price target of $90.00.
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Travis Steed has given his Hold rating due to a combination of factors influencing Merit Medical Systems. The company reported a strong third quarter, with revenues surpassing expectations by 4% and an EPS beat driven by better-than-expected gross margins. Despite these positive results, the revenue guidance raise for 2025 was modest, suggesting potential pull-forward from the fourth quarter, which tempers the enthusiasm for a more aggressive rating.
Additionally, while the initial market response to the Wrapsody product has been promising, the timeline for its broader implementation and reimbursement remains uncertain, with the earliest effective date anticipated in 2026. The new CEO, Martha Aronson, is still in the early stages of her tenure, focusing on understanding the company and its operations. These elements contribute to a cautious outlook, justifying the Hold rating as the company navigates these transitional phases.
Based on the recent corporate insider activity of 56 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MMSI in relation to earlier this year.