Piper Sandler reaffirmed a Neutral rating and a $50.00 price target for Inari Medical Inc. (NASDAQ:NARI). The firm addressed newly presented animal study data regarding Inari Medical's FlowSaver technology, which was showcased at a recent PERT medical meeting.
The study in question involved a single Chester pig and investigated the occurrence of hemolysis, a condition where red blood cells are destroyed, after multiple uses of the FlowSaver technology.
The research indicated an increase in plasma free hemoglobin (PFH) levels after five passes of aspiration with FlowSaver, reaching levels above the INTERMACS threshold for clinical hemolysis. Despite these findings, Piper Sandler expressed a cautious approach to the data, citing several reasons why it should not affect Inari Medical's commercial outlook.
Firstly, the study's scope was limited to a single animal, which may not provide a comprehensive assessment of the technology's safety. Furthermore, the FlowSaver device has already been used in over 70,000 patients, suggesting a substantial history of clinical use.
In addition, Inari Medical has published multiple studies in peer-reviewed medical journals, demonstrating the efficacy and safety of the FlowSaver technology.
The U.S. Food and Drug Administration (FDA) has also conducted thorough testing before approving the FlowSaver device, providing an additional layer of credibility to its safety profile. Lastly, Piper Sandler noted conversations with several physicians who appeared to be unconcerned by the study's findings, further supporting the analyst's position.
Despite the study's results indicating a potential for hemolysis, Piper Sandler believes that the data presented does not warrant any immediate concern regarding Inari Medical's business or the use of FlowSaver in clinical settings.
The firm's stance remains unchanged, with a Neutral rating and a $50.00 price target on the company's stock.
InvestingPro Insights
As Inari Medical Inc. (NASDAQ:NARI) navigates the concerns raised by the recent study on its FlowSaver technology, investors may also consider the company's financial health and market performance for a broader perspective. According to real-time data from InvestingPro, Inari Medical has a market capitalization of $2.68 billion, underscoring its position in the market. Despite the challenges, the company has shown a robust revenue growth of 24.67% over the last twelve months as of Q2 2024, which may reflect the underlying demand for its medical technologies.
InvestingPro Tips highlight that Inari Medical operates with a moderate level of debt and has an impressive gross profit margin of 87.15%. However, analysts have concerns, as three of them have revised their earnings downwards for the upcoming period, and net income is expected to drop this year. These insights suggest that while Inari Medical has strong operational metrics, there may be financial headwinds ahead.
The current Price / Book ratio stands at 6.32, which could indicate that the stock is trading at a premium relative to its book value. It's important for investors to weigh these financial considerations alongside the clinical performance of Inari Medical's products. For those seeking more detailed analysis, InvestingPro offers additional tips on Inari Medical, which can be found at https://www.investing.com/pro/NARI.
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