Piper Jaffray analyst Matt O’Brien raised his price target for Merit Medical Systems (MMSI) to $58 from $52 and continues to recommend purchase of the shares after hosting investor meetings with management. The biggest piece of new information was that one of the company’s largest competitors, Terumo (TRUMY), has encountered a manufacturing issue that could lead to millions in incremental revenue in the second half of 2018 for Merit, O’Brien tells investors in a research note. Additionally, the fears that operating margin expansion at the company are at risk with a new CFO are overstated and management is fully committed to improvements, the analyst adds. The analyst calls Merit Medical his favorite name in mid-cap med tech and keeps an Overweight rating on the name.
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