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On Wednesday, Oppenheimer analyst Steven Lichtman adjusted the price target for Merit Medical Systems , Inc. (NASDAQ: NASDAQ:MMSI) to $116.00, down from the previous target of $120.00, while maintaining an Outperform rating on the stock. The adjustment follows Merit Medical (TASE:BLWV)’s fourth-quarter sales report, which slightly exceeded Oppenheimer’s and the Street’s expectations. The company’s reported sales were $355.2 million, showing a 6.1% increase in constant currency and organic growth, which had been pre-announced in January. With a market capitalization of $6 billion and revenue growth of 8.12% over the last twelve months, Merit Medical continues to demonstrate solid performance. InvestingPro analysis indicates the stock is trading near its 52-week high of $111.45, suggesting strong market confidence in the company’s trajectory.
Merit Medical’s earnings per share (EPS) for the quarter were $0.93, surpassing the estimates of $0.82 and $0.83 set by Oppenheimer and the Street, respectively. This beat was attributed to significant gross margin (GM) leverage, which improved by 300 basis points year-over-year. According to InvestingPro data, the company maintains a healthy gross profit margin of 46.83% and operates with moderate debt levels. The analyst highlighted the company’s recent acquisitions, including Cook Medical and EndoGastric Solutions, which are performing beyond initial expectations.
The company’s free cash flow (FCF) was another highlight of the report, with a remarkable year-over-year increase of 67%, totaling $185 million in 2024. Merit Medical’s strong financial position is reflected in its impressive current ratio of 5.36, indicating robust liquidity. Looking ahead, Merit Medical provided sales guidance for 2025 that anticipates 5.5-6.5% organic growth. The margin guidance is roughly in line with expectations, led by gross margin expansion. However, EPS guidance was slightly lower due to a change in accounting treatment for the company’s convertible securities, which is expected to increase the share count. InvestingPro subscribers can access 12 additional key insights about Merit Medical’s financial health and valuation metrics, along with detailed analysis in the comprehensive Pro Research Report.
The analyst also noted that operating income growth is forecasted to be around 13%. The initial launch of WRAPSODY, Merit Medical’s new product, is under close observation, with increasing contributions anticipated throughout the year as training programs expand and reimbursement visibility improves in the second half of the year. The company’s strong financial health is reflected in its "GREAT" overall score from InvestingPro, though current valuations suggest the stock may be trading above its Fair Value.
In other recent news, Merit Medical Systems , Inc. reported impressive fourth-quarter earnings for 2024, with earnings per share (EPS) of $0.93, surpassing the forecasted $0.82. The company also exceeded revenue expectations, reporting $355.2 million against the anticipated $346.76 million. Merit Medical’s organic revenue growth increased by 6.1% year-over-year, and the company saw improvements in gross and operating margins. The company provided optimistic guidance for 2025, projecting revenue growth of 8-10% and non-GAAP EPS in the range of $3.58 to $3.70.
In another development, Needham analysts adjusted their price target for Merit Medical to $116 from $122 but maintained a Buy rating, reflecting a revised EPS estimate for 2026. Raymond (NSE:RYMD) James also raised their price target to $116 from $110, maintaining an Outperform rating, citing the company’s record gross margin improvement. The analysts at Raymond James believe Merit Medical is well-positioned to exceed its guidance and sustain revenue growth. These recent developments underscore Merit Medical’s strong operational performance and strategic focus, positioning the company for continued growth in the coming year.
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