There’s a lot to be optimistic about in the Healthcare sector as 2 analysts just weighed in on Merit Medical Systems (MMSI) and Integra Lifesciences (IART) with bullish sentiments.
Merit Medical Systems (MMSI)
In a report released yesterday, Michael Matson from Needham reiterated a Buy rating on Merit Medical Systems, with a price target of $73. The company’s shares closed yesterday at $56.50.
Matson commented:
“MMSI’s 1Q19 revenue and EPS beat consensus (due to a lower than expected tax rate). Management reiterated its 2019 revenue and EPS guidance. Organic revenue growth slowed from 4Q18 despite an easier comp. Gross margin expansion was partially offset by higher SG&A but MMSI still delivered 60 bps of Y/Y operating margin improvement. We still believe there are multiple sources of upside to revenue (e.g. BD products are organic, Cianna SCOUT would be incremental) and EPS guidance (e.g. continued margin improvement) and we reiterate our Buy rating.”
According to TipRanks.com, Matson is a 5-star analyst with an average return of 10.3% and a 61.3% success rate. Matson covers the Healthcare sector, focusing on stocks such as Boston Scientific Corp, Cardiovascular Systems, and Zimmer Biomet Holdings.
Merit Medical Systems has an analyst consensus of Strong Buy, with a price target consensus of $72.33, representing a 28.0% upside. In a report released yesterday, Barrington also maintained a Buy rating on the stock with a $69 price target.
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Integra Lifesciences (IART)
In a report released today, Steven Lichtman from Oppenheimer maintained a Buy rating on Integra Lifesciences, with a price target of $65. The company’s shares closed yesterday at $51.34.
Lichtman said:
“IART’s Q1 sales were $360M; within its $357-362M guidance range and about in- line with us/consensus. Organic growth of 3.1% was in line with guidance. EPS of $0.65 was above our/consensus estimates of $0.60/$0.61; versus our estimate, lower R&D/interest expense were upside drivers. Gross margin was ahead, offset by higher SG&A. EPS guidance of $2.65-2.72 (implying 10-12% growth) was reiterated. ’19 sales guidance was also reiterated at ~5% organic. Tailwinds for ’19 include >10 new product launches, the realigned/expanded OTT salesforce and international expansion. The Implied step-up in sales growth in 2H versus 1H in ’19 guidance remains a near-term focus for investors, but solid EBITDA expansion does remain on track and the shares trade at a >20% discount to peers.”
According to TipRanks.com, Lichtman has currently no stars on a ranking scale of 0-5 stars, with an average return of -5.4% and a 44.2% success rate. Lichtman covers the Healthcare sector, focusing on stocks such as Helius Medical Technologies, Tandem Diabetes Care Inc, and Boston Scientific Corp.
Integra Lifesciences has an analyst consensus of Moderate Buy, with a price target consensus of $59.86, implying a 16.6% upside from current levels. In a report released yesterday, BTIG also maintained a Buy rating on the stock with a $65 price target.
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