MMSI Stock Forecast & Price Target

Merit Medical Systems Inc. reported a robust overall revenue increase of 13.2%, driven primarily by an 11.0% growth in its cardiovascular segment, which represents a significant source of the company’s earnings. The company's endoscopy segment also demonstrated impressive growth, with an 81.0% increase in revenue largely attributed to recent mergers and acquisitions. Additionally, the firm raised its earnings guidance for FY/25, citing a more favorable tariff environment and stronger-than-anticipated performance in the first half of the fiscal year.

Merit Medical Systems Inc. has experienced a notable decline of 6% year-over-year in its China business for the second consecutive quarter, attributed to ongoing macroeconomic softness, which has raised concerns among investors despite management's reassurances about the long-term outlook. Additionally, the company significantly reduced its revenue guidance for Wrapsody for FY/25, from a previously expected $7-9 million down to $2-4 million, reflecting increased uncertainty and weakening demand. Furthermore, while the gross margin on a GAAP basis was reported at 48.2%, surpassing previous estimates, the decline in peripheral intervention revenue to $142.8 million against expectations of $145.5 million adds to the negative sentiment regarding the company’s future performance.