On Tuesday, Needham reaffirmed its positive stance on shares of Merit Medical Systems , Inc. (NASDAQ:MMSI), a $5.57 billion medical device company, with a Buy rating and a price target of $109.00. According to InvestingPro analysis, Merit Medical (TASE:PMCN) maintains a "GREAT" financial health score, with particularly strong profitability metrics. Following the company's release of preliminary financial results, Needham expressed confidence in Merit Medical's performance and future prospects.
Merit Medical preannounced its 2024 revenue to be between $1.355 and $1.357 billion, which represents a growth of 7.7% to 7.9% year-over-year on a reported basis, and 8.4% to 8.6% on a constant currency basis. These figures surpassed the consensus estimate of $1.348 billion.
The company's expectation for fourth-quarter 2024 revenue is set at approximately $353.6 to $353.8 million, indicating a 9.0% increase compared to the consensus forecast of $347 million. This growth trajectory aligns with the company's historical performance, as InvestingPro data shows a consistent 5-year revenue CAGR of 7%.
Needham's analysts have decided to hold off on updating their financial model for Merit Medical until the full fourth-quarter 2024 results are released and the company provides its financial guidance for 2025, which is expected to be disclosed on February 25, 2025.
The firm's analysts highlighted Merit Medical's effective execution of its strategic plans, anticipating continued robust revenue growth, margin expansion, and increased free cash flow. With a gross profit margin of 46.83% and strong liquidity position, the company appears well-positioned for future growth.
The reiteration of the Buy rating underscores Needham's belief in the company's ongoing success and its ability to sustain growth moving forward. For deeper insights into Merit Medical's financial health and growth prospects, including 13 additional exclusive ProTips, visit InvestingPro.
In other recent news, Merit Medical Systems , Inc. has seen a flurry of activity. The company's robust performance in 2024, marked by an 18% growth in earnings per share and revenue growth of 8.12%, has been acknowledged by Raymond (NS:RYMD) James, which increased its price target for the company's shares. Wells Fargo (NYSE:WFC) also upgraded Merit Medical to Overweight, suggesting a positive outlook.
The medical device company's Wrapsody Cell-Impermeable Endoprosthesis received premarket approval from the US Food and Drug Administration, with commercialization set to begin in 2025. This development has been met with enthusiasm, especially as it is expected to contribute to the company's revenue stream and support its competitive position in the market.
In addition to these developments, the company also reported strong Q3 results, with total revenue reaching $339.8 million, marking a 7.8% increase from the previous year. Furthermore, the company acquired Cook Medical's lead management portfolio, which is expected to generate significant future revenue.
In a significant leadership change, the company's President, Joseph C. Wright, recently resigned, with Fred P. Lampropoulos reinstated as the President. Despite this change, the company continues to demonstrate solid growth. These are the recent developments for Merit Medical Systems, Inc.
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