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Piper Sandler has reaffirmed a Neutral rating with a $50.00 price target for Inari Medical Inc. (NASDAQ: NARI). The firm's stance comes after a week where the company's shares saw a decline.
The performance was linked to two specific developments: the updated Instructions for Use (IFU) for the ClotTriever XL (CT XL) device, which was published on the FDA's website last Thursday, and remarks from competitors during a recent industry event.
The updated IFU for CT XL, which is a thrombectomy system designed by Inari Medical, included reports of patient injury and death associated with the device. Additionally, during the PSC West Coast Bus Trip, competitors discussed Inari Medical's CT XL as well as its FlowSaver technology, which is a proprietary blood return system.
Inari Medical did not attend the PSC West Coast Bus Trip this year, but Piper Sandler was able to communicate with the company's management over the weekend. According to the management, Inari Medical anticipates no revenue impact from the IFU change related to CT XL. Moreover, the company strongly supports the safety and efficacy of its FlowSaver technology, despite the concerns raised.
In other recent news, Inari Medical has seen a flurry of activity with significant developments. The company's second-quarter earnings report showed a modest revenue beat and a raised forecast, with a 17% growth in its core US Venous Thromboembolism (VTE) business. However, the operational loss was larger than expected, which may raise concerns among investors.
In addition to financial results, Inari Medical announced an unexpected Chief Financial Officer (CFO) transition, interpreted as a move toward succession planning. Truist Securities adjusted its price target for Inari Medical, decreasing it to $55 from the previous $60, while maintaining a Hold rating on the company's stock.
In contrast, William Blair initiated coverage on Inari Medical with an Outperform rating, citing the company's significant presence in large, underpenetrated markets and the anticipation of influential clinical data from ongoing trials. Conversely, Needham downgraded Inari Medical's stock from Buy to Hold, citing anticipated competition in the venous thrombectomy market.
InvestingPro Insights
In light of recent events surrounding Inari Medical Inc. (NASDAQ: NARI), including the updated IFU for the ClotTriever XL device and discussions at an industry event, investors are closely monitoring the company's financial health and stock performance. According to real-time data from InvestingPro, Inari Medical has a market capitalization of approximately $2.53 billion and is currently trading at a high Price / Book multiple of 5.96. This valuation comes despite the company not being profitable over the last twelve months, with a reported net loss per share of $0.99.
The stock has indeed taken a significant hit, with a one-week price total return of -13.04% and a one-month price total return of -19.49%. These figures underscore the recent volatility in Inari Medical's share price, which is also reflected in the analysts' revisions, as three analysts have downgraded their earnings expectations for the upcoming period.
InvestingPro Tips note that Inari Medical operates with a moderate level of debt and does not pay a dividend to shareholders. However, the company boasts an impressive gross profit margin of 87.15% over the last twelve months, highlighting the efficiency of its operations despite the challenges faced. As investors look ahead, they can find additional insights and tips on InvestingPro, which currently lists more than 6 tips for Inari Medical at https://www.investing.com/pro/NARI, to help them make informed decisions.
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