On Tuesday, Baird has increased the stock price target for Inari Medical Inc. (NASDAQ: NARI) to $67 from the previous $66, while maintaining an Outperform rating on the stock. The adjustment follows Inari Medical's recent performance, where the company reported a revenue growth of 21% and reiterated its profit expectations for the first half of 2025.
The company's continued success is attributed to its solid performance in the US Venous Thromboembolism (VTE) sector, where it's estimated to have achieved mid-to-high-teens growth. This suggests that Inari Medical is maintaining its market share more effectively than some had anticipated. Looking forward, stable growth trends in the US VTE market are expected into 2025 and 2026.
Baird's outlook for Inari Medical is bolstered by upcoming catalysts projected for the fourth quarter of 2024, including the PEERLESS, LimFlow, and Artix product developments. These catalysts are anticipated to provide additional upside potential. Moreover, the company is expected to see an increased contribution from international revenue streams.
With a high-teens growth forecast and an improving profit trajectory on the horizon, Baird's stance on Inari Medical remains positive. The firm suggests that concerns which might have been considered "bearish" are now less convincing, making a case for a more sustainable expansion of the company's market valuation.
In other recent news, Inari Medical has been in the spotlight due to a series of developments. The company reported an impressive third-quarter revenue of $153.4 million, a 21.4% increase year-over-year, surpassing the consensus estimate of $150.7 million. Following this performance, Inari Medical revised its full-year 2024 revenue guidance upward to a range of $601.5 million to $604.5 million.
Analysts from various firms have responded to these results. Canaccord Genuity maintained a Buy rating on Inari Medical and raised the price target to $74.00. Truist Securities and Baird also adjusted their price targets for the company, increasing them to $50.00 and $66.00, respectively. Meanwhile, BTIG reaffirmed a Buy rating with an $86.00 price target.
Inari Medical is set to present results from its significant PEERLESS trial, which compares its FlowTriever system to traditional treatments for Pulmonary Embolism. The company is also making strides in its Emerging Therapies and international markets, anticipating more substantial growth contributions in 2025. These are amongst the recent developments for Inari Medical.
InvestingPro Insights
Recent InvestingPro data adds depth to Baird's optimistic outlook on Inari Medical (NASDAQ: NARI). The company's impressive revenue growth of 24.67% over the last twelve months aligns with Baird's assessment of solid performance in the US VTE sector. This growth is complemented by a robust gross profit margin of 87.15%, highlighting Inari's operational efficiency.
InvestingPro Tips reveal that Inari operates with a moderate level of debt, which could provide financial flexibility as the company pursues growth opportunities and product developments mentioned in Baird's analysis. However, it's worth noting that analysts do not anticipate the company will be profitable this year, which investors should consider alongside the positive growth projections.
The current market cap of $2.48 billion and a Price to Book ratio of 5.85 suggest that investors are pricing in future growth potential, aligning with Baird's expectation of upcoming catalysts and international expansion. For a more comprehensive analysis, InvestingPro offers 7 additional tips that could provide further insights into Inari Medical's financial health and market position.
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