In a report released today, Michael Matson from Needham maintained a Buy rating on Merit Medical Systems (MMSI – Research Report), with a price target of $116.00.
Michael Matson has given his Buy rating due to a combination of factors that highlight Merit Medical Systems’ strong financial performance and strategic execution. The company’s fourth-quarter revenue for 2024 surpassed its preannouncement figures, and its earnings per share exceeded market expectations. Despite the 2025 earnings per share guidance being below consensus, the revenue guidance aligns with market predictions, and the company has reiterated its WRAPSODY sales forecast, which Matson considers conservative.
Merit Medical Systems has demonstrated an improvement in organic revenue growth, with a year-over-year increase in gross and operating margins. The company also reported robust free cash flow in the fourth quarter of 2024, significantly higher than the previous quarter. Matson believes that the company is effectively implementing its strategy, which is expected to continue driving strong revenue growth, margin enhancements, and cash flow. Consequently, while the price target has been adjusted, the Buy rating is maintained.