Analyst Craig Bijou from Bank of America Securities maintained a Hold rating on Merit Medical Systems (MMSI – Research Report) and decreased the price target to $100.00 from $118.00.
Craig Bijou’s rating is based on several factors impacting Merit Medical Systems. Despite a slight revenue beat in the first quarter, the company faces significant challenges due to tariffs, which are expected to have a substantial impact on earnings per share by 2025. The tariffs, primarily from China, are anticipated to create a considerable cost of goods sold headwind, affecting the company’s financial performance.
Additionally, while Merit Medical has strategies in place to mitigate some of the tariff impacts by 2026, the current environment limits the potential for significant multiple expansion. Consequently, the price objective has been adjusted downward to reflect these challenges and the contraction in peer multiples. These factors combined lead to the Hold rating, as the potential for upside is constrained by the external economic pressures and tariff-related costs.
Based on the recent corporate insider activity of 43 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.