Merit Medical Systems stock rises as Needham reiterates Buy rating

Investing.com - Merit Medical Systems , Inc. (NASDAQ:MMSI), a $5.4 billion medical device company with a GREAT financial health score according to InvestingPro, saw its stock rise after Needham reiterated its Buy rating and $108.00 price target.

Merit Medical (TASE:BLWV) announced Monday that Martha Aronson will become the company’s new President and Chief Executive Officer, effective October 3, 2025. Aronson previously served as Senior Vice President and President of North America for Hill-Rom (NYSE:HRC) Holdings, Inc., now part of Baxter (NYSE:BAX), and has nearly 20 years of managerial experience at Medtronic (NYSE:MDT). The leadership transition comes as the company maintains strong financial metrics, with a healthy current ratio of 4.87 and moderate debt levels.

Fred Lampropoulous, who founded Merit Medical in 1987 and has served as CEO since its inception, is expected to remain as Chairman of the Board following Aronson’s appointment. The company had previously announced its CEO succession plan in December 2023, which was effective through December 2025.

Merit Medical also provided preliminary second-quarter 2025 revenue guidance of $380-384 million, representing approximately 12-14% year-over-year growth on a reported basis and 11-13% growth on a constant currency basis. This guidance exceeds the consensus estimate of $373 million.

The company is scheduled to announce its full second-quarter 2025 financial results and update its 2025 financial guidance on July 30, 2025.

In other recent news, Merit Medical Systems announced a CEO succession plan, naming Martha Aronson as the new President and Chief Executive Officer, effective October 3, 2025. The company also reported preliminary unaudited revenue for the second quarter of 2025, estimating between $380 million and $384 million, reflecting a 12% to 14% year-over-year increase. Additionally, Merit Medical completed the acquisition of Biolife Delaware, L.L.C., a transaction valued at approximately $120 million, which is expected to contribute $10 million to $11 million in revenue for fiscal year 2025. The acquisition is projected to be slightly dilutive to non-GAAP EPS in 2025 but accretive to non-GAAP margins and earnings per share in 2026.

Piper Sandler reiterated an Overweight rating on Merit Medical, maintaining a positive outlook despite recent insider sales by executives. Canaccord Genuity raised its price target for the company from $108 to $112, following the Biolife acquisition. Merit Medical reaffirmed its fiscal year 2025 guidance, anticipating net sales between $1.480 billion and $1.501 billion, with a 9% to 11% increase over the previous year. The company also expects non-GAAP earnings per share to range from $3.28 to $3.41. These developments reflect Merit Medical’s strategic efforts to enhance its product offerings and financial performance.

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