Oklo stock tumbles as Financial Times scrutinizes valuation
Investing.com - Canaccord Genuity has raised its price target on Merit Medical Systems, Inc. (NASDAQ:MMSI) to $104.00 from $103.00 while maintaining a Buy rating on the stock. The company, currently trading near its 52-week low, has received strong analyst support with consensus targets ranging from $90 to $122. According to InvestingPro data, 9 analysts have recently revised their earnings estimates upward for the upcoming period.
The price target adjustment follows Merit Medical’s October 15 announcement that it has signed an asset purchase agreement to acquire PENTAX Medical’s C2 CryoBalloon Ablation System for up to $22 million, consisting of $19 million in cash and $3 million in contingent milestone payments. With a strong current ratio of 4.09 and an overall GREAT financial health score according to InvestingPro, Merit Medical appears well-positioned to execute this acquisition.
The C2 CryoBalloon Ablation System is a focal ablation system designed to treat patients suffering from Barrett’s esophagus, a condition commonly caused by gastroesophageal reflux disease (GERD). This acquisition expands Merit’s Endoscopy product portfolio and will complement its previous acquisition of Endogastric Solutions. The company has demonstrated solid execution with 10.11% revenue growth in the last twelve months, suggesting potential for successful integration of new acquisitions.
Merit Medical expects the C2 CryoBalloon to generate approximately $1 million in revenue from closing through year-end 2025, followed by approximately $6 million to $8 million in fiscal year 2026. The company anticipates the acquisition will become accretive to non-GAAP earnings per share starting in 2027.
The transaction is expected to close during the fourth quarter of 2025, after which Merit Medical plans to transfer the technology’s manufacturing to its South Jordan, Utah facility and onboard some PENTAX employees as part of the deal.
In other recent news, Merit Medical Systems , Inc. reported a strong performance for the second quarter of 2025, with total revenue increasing by 13% year-over-year to $382.5 million. The company achieved a record non-GAAP operating margin of 21.2%, and its non-GAAP earnings per share (EPS) grew by 10%. These results highlight the company’s continued financial growth and operational efficiency. Despite these positive financial metrics, there was a slight decline in the company’s stock in premarket trading. The developments reflect Merit Medical’s robust financial health in the recent quarter. Investors may find the company’s performance noteworthy, considering the significant revenue growth and record margins.
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