BTIG Merit Medical Systems, Inc. (MMSI): View Point acquisition a 'nice strategic fit'

BTIG analyst Sam Eiber reiterated a Buy rating and $107.00 price target on Merit Medical Systems, Inc. (NASDAQ: MMSI)

The analyst commented, "Before market open, Merit Medical announced it acquired View Point Medical for $140M. The transaction includes $90M in cash at closing and two deferred payments of $25M each scheduled to be paid no later than the first and second anniversaries of the closing date. Located in Carlsbad, California, View Point manufactures the FDA-cleared OneMark Detection Imaging System and OneMark Tissue Markers. Like Merit's Scout system, the OneMark Breast Marker is placed percutaneously in soft tissue to mark a biopsy site or soft tissue intended for surgical removal. However, the OneMark Breast Marker uses silica microspheres compared to a micro-impulse radar used in Scout. The silica microspheres do not emit any energy but instead, when exposed to ultrasound energy, change the timing of the waves that bounce back which can then be processed to create a bright color image showing where the marker is. We believe this acquisition is a nice strategic fit given the overlap in customer call points. The acquisition is projected to contribute $2-4M to Merit's total revenue in 2026 and be dilutive to 2026 non-GAAP EPS by ~$0.05. In 2027, the acquisition is projected to contribute $14-16M in revenue and be accretive to nonGAAP EPS. Sales of View Point’s OneMark System are projected to grow at least 20% per year, with 70% non-GAAP gross margins and accretive to non-GAAP operating margins. Merit will discuss the acquisition in more detail during its first quarter earnings call scheduled for April 30, 2026. We do not make any changes to our model at this time."

For an analyst ratings summary and ratings history on Merit Medical Systems, Inc. click here. For more ratings news on Merit Medical Systems, Inc. click here.

Shares of Merit Medical Systems, Inc. closed at $68.93 yesterday.

You May Also Be Interested In

• Goldman Sachs Upgrades New Oriental Education (EDU) to Buy
• Columbia Financial and Northfield Bancorp mail merger election materials
• Bernstein SocGen Group Starts Pepsico (PEP) at Market Perform