lowers Inari Medical stock price target, maintains buy rating

Canaccord Genuity maintained a Buy rating on Inari Medical Inc. stock (NASDAQ: NARI ) on Wednesday but lowered the price target to $55 from $75 previously. The adjustment comes after Inari Medical reported first-quarter 2024 results that beat expectations.

The company reported quarterly revenue of $143.2 million, up 23.3% year over year. The results beat Canaccord Genuity and Street's expectations.

Inari Medical has also updated its full-year guidance for 2024 and now expects revenue to be between US$592.5 million and US$602.5 million, an annual increase of 20% to 22%. This was an increase from the previous forecast range of $580 million to $595 million.

Despite a strong start to the first quarter, the company's management conservatively forecast revenue guidance for the remainder of the year, factoring in an easier comparison to the second quarter of 2024.

The company's management highlighted its three main growth drivers: venous thromboembolism (VTE) treatment, emerging therapies and international expansion. They detailed plans for commercial expansion, deeper market penetration and the release of strong clinical data expected later this year. In addition, Inari Medical is focused on developing its product portfolio, including new products such as VenaCor, Artix and LimFlow, as well as growth plans outside the United States.

Regarding the Corporate Integrity Agreement (CIA) with the Department of Justice (DOJ), Inari Medical management stated that the company has not seen any commercial impact from the agreement and does not expect any impact in the future.

The company is continuing to cooperate with the Department of Justice on this matter. Canaccord Genuity reiterated its confidence in Inari Medical's growth prospects and a buy rating on the stock, despite a lower price target.

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Investment Professional Insights

InvestingPro's live data provides investors with more context as Canaccord Genuity maintained a Buy rating and adjusted its price target on Inari Medical Inc. With a market capitalization of $2.16 billion and gross profit margins of 87.67% over the past 12 months to Q1 2024, Inari Medical's financial position appears to be very strong. The company's impressive gross margins are a testament to its operating efficiency and could be a key factor in its long-term growth potential.

However, investors should be aware that Inari Medical is currently trading near its 52-week low, with its shares down 20.86% from the last month. This could represent a potential buying opportunity for those who believe in the company's growth momentum and international expansion plans. Additionally, the company's liquid assets exceed its short-term debt, showing that the company has a strong financial position that can withstand short-term market fluctuations.

For those looking for more in-depth analysis, InvestingPro offers additional InvestingPro Tips, including insights into the company's projected net income decline and earnings expectations for the year. Interested investors can find more tips and comprehensive analysis, including InvestingPro's fair value estimate for Inari Medical, at further enrich your investment strategy, use the coupon code PRONEWS24 Annual or biennial Pro and Pro+ subscriptions receive an additional 10% discount. Through more InvestingPro Tips, investors can have a more detailed understanding of Inari Medical's financial prospects and market positioning.

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