Here's Why You Should Bet On Merit Medical (MMSI) Stock Now
Zacks Investment Research | May 27, 2019 09:13PM ET
Merit Medical Systems, Inc. (NASDAQ:MMSI) is well poised for growth on the back of solid segmental performances, robust product pipeline, strategic expansion and strong prospects in the HeRO product line.
The stock currently carries a Zacks Rank #2 (Buy).
What’s Favoring the Stock?
Merit Medical remains focused on bolstering its product pipeline which aids it in expanding customer base and enhance overall performance. The company remains optimistic about several new products that are in the pipeline and slated for introduction in the second quarter of 2019. These are expected to aid the company’s growth and margins.
Further, the company continues to reap benefits from its HeRO product line, which has been a key catalyst. Given the strong global prospects of hemodialysis solutions, the HeRO product line is likely to provide Merit Medical with a competitive edge in the MedTech markets. Per a report by MarketWatch, the global hemodialysis and peritoneal dialysis market is estimated to reach a worth of $84 billion by 2024 at a CAGR of 6%.
The company continues to leverage from bolt-on buyouts to drive inorganic growth. The company remains optimistic about Merit Medical’s Becton Dickinson deal, acquisitions of Cianna Medical and Vascular Insights, and execution of the global growth and profitability plan.
Additionally, the company’s continued focus on Research and Development (R&D) helps in instilling investor confidence. The company’s strong commitment to innovation led to the introduction of several new products, improvements in the existing products and expansion of product lines, and enhancements and new equipment in the R&D facilities.
Notably, solid 2019 outlook buoys optimism for the stock. The company expects 2019 revenues in the band of $1.01-$1.03 billion. Adjusted EPS are expected between $1.97 and $2.08. The company anticipates adjusted gross margins within 50.6-51.3%.
Merit Medical expects core revenue growth of 8-10%. The company also expects an addition of 100-150 basis points to gross margin, and net income improvement of approximately 14-19%.
Price Performance
Shares of Merit Medical have declined 5.5%, against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.