Michael Matson, an analyst from Needham, maintained the Buy rating on Merit Medical Systems. The associated price target is $108.00.
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Michael Matson has given his Buy rating due to a combination of factors including Merit Medical Systems’ impressive financial performance and strategic initiatives. The company reported record-high gross margins and exceeded expectations for both revenue and earnings per share in the third quarter of 2025. Additionally, the management’s decision to raise revenue and EPS guidance for 2025 reflects confidence in the company’s future performance.
Another contributing factor is the company’s organic revenue growth, which improved to 7.8% year-over-year in the third quarter of 2025, compared to 6.7% in the previous quarter. The increase in both gross and operating margins, along with a significant rise in free cash flow from $38 million in the third quarter of 2024 to $53 million in the same period of 2025, further supports the positive outlook. Matson also notes the potential for additional revenue from the WRAPSODY product, pending a decision on a Medicare outpatient transitional pass-through add-on payment, which could enhance the company’s financial standing starting in 2026.
In another report released on October 16, Canaccord Genuity also maintained a Buy rating on the stock with a $104.00 price target.
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.