Merit Medical To See Sustained Revenue Growth Despite Macro Headwinds, Bullish Analyst Says

Needham analyst Mike Matson reiterated a Buy rating on the shares of Merit Medical Systems Inc MMSI, raising the price target to $90 from $84.
Merit Medical is executing "well on its strategy" despite macro headwinds, and the analyst anticipates sustained strong revenue growth, margin improvement, and free cash flow.
Noting the bull case assumptions, Matson expects organic revenue growth to accelerate into the high-single digits or better, driven by recent acquisitions and new product launches, resulting in significant operating margin improvement.
The analyst believes that the company's revenue growth will return to the mid-single digits or better and EPS growth will return to 15%+. In 1Q23, reported revenue grew 8% Y/Y to $297.6 million.
Based on the above, the analyst raised the 2023 and 2024 EPS estimates to $2.90 from $2.85 and to $3.21 from $3.11, respectively.
Price Action: MMSI shares closed higher by 5.27% at $81.76 on Thursday.

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